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Market Update

Nifty : 25,986.00 -46.20 (-0.18%)

Sensex : 85,106.81 -31.46 (-0.04%)

* The Nifty ended lower today, slipping back below 26,000 as broad-based selling hit the market. Sentiment took a knock after the rupee hit a record low of 90.3 against the dollar, raising concerns over rising import costs. Persistent FII selling also weighed on the index, though some DII buying helped cushion the fall. Weak October IIP data, which dropped to a 14-month low, along with softer GST collections, added to the cautious mood.

* Nifty fell 46 points or 0.2% to close at 25,986, after moving between 26,066 at the high and 25,891 at the low during the session. Almost every sector saw red today, with PSU banks taking the worst hit—down over 3% after the government clarified it is not considering any proposal to raise the foreign direct investment (FDI) limit in public sector banks to 49%, from the current 20%. Indian Bank slipped 5.5% to ?811, while PNB, Central Bank, Bank of India, Bank of Baroda and Union Bank were down 3–4%.

* In contrast, IT stocks stood out, gaining nearly 1% as the weaker rupee boosted their export appeal. Names like Wipro, TCS, Infosys and Mphasis ended 1–2% higher.

* Global cues offered little support, with US futures inching up just 0.2% on hopes of a Fed rate cut ahead of key jobs data, while Asian and European markets remained mixed.

Technical Outlook:

* Nifty index opened with a gap down by around 80 points and sharply slipped in the first tick and breached 26900 zones. It witnessed pressure amidst mixed global cues signaling short term hesitation. It witnessed some recovery towards the end and managed to recoup most of its intraday losses.

* It formed a doji sort of a candle on the daily frame and has been making lower lows from the last three sessions. Now till it holds below 26k marks, weakness could be seen towards 25850 then 25750 zones while upside remains restricted with hurdles near 26150 then 26250 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.27% at 26142 levels. Positive setup seen in Biocon, Wipro, TCS, Hindustan Zinc, TECHM, Axis Bank, KPIT Technologies, MCX and Ashok Leyland while weakness in INOX Wind, Hudco, IREDA, RVNL, NCC, Fortis, HAL, Kaynes, Indigo, Mazdock and Trent.

* On option front, Maximum Call OI is at 26000 then 26200 strike while Maximum Put OI is at 26000 then 25900 strike. Call writing is seen at 26000 then 26100 strike while Put writing is seen at 25900 then 25950 strike. Option data suggests a broader trading range in between 25500 to 26400 zones while an immediate range between 25800 to 26200 levels.

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