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Market Update

Nifty : 24,649.55 -73.20 (-0.30%)

Sensex : 80,710.25 -308.47 (-0.38%)

* Equity benchmark Sensex declined over 300 points, and the Nifty slipped below the 24,700 mark as investor sentiment turned cautious amid renewed tariff threats from U.S. President Donald Trump. His warning targeted India’s continued imports of Russian crude oil, raising concerns over escalating trade tensions. Additionally, persistent selling by Foreign Institutional Investors (FIIs) continued to weigh on the market, with foreign portfolio investors extending their selling streak to the 11th consecutive session as of Monday.

* Investors also adopted a wait-and-watch approach ahead of the Reserve Bank of India’s policy announcement on Wednesday, where the central bank is expected to maintain the current interest rates.

* The Sensex dropped 308 points, or 0.4%, to close at 80,710, while the Nifty fell 73 points, or 0.4%, to settle at 24,649. Sector-wise, banking, realty, pharma, and FMCG stocks witnessed selling pressure, whereas auto and defence stocks saw marginal gains.

* On the global front, U.S. markets rallied over 2% overnight, while Asian and European markets posted gains of around 1% each, supported by expectations of a U.S. Federal Reserve rate cut following weaker-than-expected job data.

* Nifty defense gained 2% after the news that the IAF, Navy to place mega orders for BrahMos supersonic cruise missiles. Paras Defense, Sola Industries, GRSE and Mazagoan Dock gained between 1-2%. Mtat Tech surged 10% after announced impressive Q1 results.

Technical Outlook:

* Nifty index opened on a flat note around the 24730 level but faced strong selling pressure in the first hour, dragging it down towards the 24600 zone. For the rest of the day, the index traded in a narrow range of 60 to 70 points, showing a clear lack of momentum. Bears tried multiple times to break below the 24600 level but bulls managed to defend it and pushed the index slightly higher.

* On the daily chart, Nifty formed multiple inside bars, which signals indecision and a lack of strong direction on either side. The index is currently hovering around its 100 day EMA and any close below this level may lead to further weakness. Now if it holds above 24600 zones, then bounce could be seen towards 24800 then 24900 zones else weakness can be seen towards 24550 and 24442 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.31% at 24716 levels. Positive setup seen in Pidilite Industries, UNO Minda, MAX Healthcare, SBI Life, Hero Moto, AB Capital, GMR Airport, TVS Motors, Eicher Motors, and Jindal Steel while weakness in BSE, Biocon, Britannia, Adani Port, Coforge, Godrej CP, Petronet, Naukri, Granules and DLF.

* On option front, Maximum Call OI is at 24700 then 25000 strike while Maximum Put OI is at 24600 then 24500 strike. Call writing is seen at 24600 then 24700 strike while Put writing is seen at 24600 then 24500 strike. Option data suggests a broader trading range in between 24200 to 25200 zones while an immediate range between 24400 to 24900 levels.

Global Market Update

* European Market - European markets gained 1% on expectation of US Federal Reserve to cut interest rate after announced weak job data.

* Asian Market - Asian stocks advanced as a wave of dip buying combined with growing bets on potential interest-rate. Japan, Australia, South Korea and Taiwan Index gained up to 1.5%.

* US Data - Service PMI and Composite PMI.

* Commodity - Oil steadied at $68/bbl, after a three-day drop, as investors weighed risks to Russian supplies, with US President Donald Trump stepping up a threat to penalize India for buying Moscow’s crude.

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