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Market Update

Nifty : 26,027.30 -19.65 (-0.08%)

Sensex : 85,213.36 -54.30 (-0.06%)

* Equity Benchmark Nifty index closed above the 26,000 mark after recovering over 100 points, or nearly 0.5%, from its intraday low, supported by improved market sentiment following November export growth reaching a near three-and-a-half-year high, despite the US imposing 50% tariffs on Indian goods. A narrowing domestic trade deficit, along with modest gains in US index futures and European markets, further supported sentiment.

* Nifty ended marginally lower by 19 points, or 0.1%, at 26,027 after hitting an intraday low of 25,904. Sectorally, the Nifty Auto and Pharma indices declined by 1% and 0.4%, respectively, while the FMCG index gained 1%. Select PSU banks, IT, and small-cap stocks witnessed fresh buying interest. The Nifty 500 advance-decline ratio stood at 1:1, indicating a partial recovery from the intraday lows.

* Globally, Asian markets ended lower, while European markets opened on a positive note amid concerns over artificial intelligence expectations spilling over from the US following Broadcom’s weaker-than-expected outlook. However, delays in the US–India trade deal, the USD/INR surging to a record high near the 91 level, and continued FII selling remain key concerns for the market.

Technical Outlook:

* Nifty index opened negative and after a slight dip it took support near 25900 zones and inched higher towards 26050 but failed to surpass its previous day’s high. It consolidated towards the end and managed to close above 26k marks.

* It formed a bullish candle on the daily frame which is third in a row and indicates buying is intact at support levels and a decisive follow up buying above 26050 will drive the next leg of rally. Now it has to continue to hold above 26000 zones for a bounce towards 26150 then 26250 zones while supports can be seen at 25900 then 25800 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.16% at 26103 levels. Positive setup seen in UPL, Shriram Finance, AU Bank, Hindustan Zinc, Ashok Leyland, Vedanta, Phoenix Mills, HCL Tech and Infosys while weakness in Mankind Pharma, Piramal Pharma, ONGC, Patanjali, Delhivery, RBL Bank, VBL, JSW Steel, IEX, TMPV, Mazdock and Power Grid.

* On option front, Maximum Call OI is at 26100 then 26000 strike while Maximum Put OI is at 26000 then 25900 strike. Call writing is seen at 26100 then 26000 strike while Put writing is seen at 26000 then 25950 strike. Option data suggests a broader trading range in between 25700 to 26300 zones while an immediate range between 25800 to 26200 levels.

Global Market Update

* European Market - European stocks rose as risk appetite returned among global traders after Friday’s tech-driven slide. Energy stocks and miners outperformed. Both UK and France Index gained 0.4% each.

* Asian Market - Stocks in Asia declined, as worries around the expectations for artificial intelligence spilled over from the US after Broadcom’s disappointing outlook. Japan, Hong Kong, South Korea and Taiwan Index declined up to 1% each.

* US Data - NAHB Housing market Index and Empire Manufacturing.

* Commodity - Brent Crude edged higher from the lowest level in almost two months on better Chinese demand as glut concerns hang over the market. Brent inched toward $62 a barrel.

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