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Market Update

Nifty : 25,327.05 -96.55 (-0.38%)

Sensex : 82,626.23 -387.73 (-0.47%)

* Equity benchmark indices ended their three-day winning streak as investors booked profits after the benchmarks touched a two-month high. Market sentiment was further dampened by caution ahead of the holiday and lingering uncertainty over the India–US trade deal. Since the August lows, the Nifty and Sensex had advanced nearly 4%, including a 1.5% gain in the last three sessions. On Thursday, the Nifty briefly crossed the 25,400 mark, while the Sensex moved past 82,100 intraday. However, both indices retreated, with the Sensex slipping 388 points, or 0.40%, to close at 82,626, and the Nifty easing 71 points, or 0.30%, to settle at 25,353.

* IT and FMCG counters came under selling pressure, while midcap and small-cap indices ended marginally higher. PSU banks extended their rally, with the Nifty PSU Bank Index rising over 1% as PNB, Bank of India, Union Bank, UCO Bank, and SBI gained 1–3%. Vodafone Idea jumped 7% to ?8.40 after the Supreme Court deferred hearing on its AGR plea to September 26, following the government’s statement that it did not oppose the plea and stressed the need for a resolution.

* Adani group stocks also saw strong buying after SEBI dismissed certain allegations made by Hindenburg Research. Adani Enterprises surged 6%, while Adani Green, Adani Energy, Adani Power, NDTV, and Adani Wilmar advanced up to 12%.

* Globally, US equities hit fresh record highs, with the Dow, S&P 500, Nasdaq, and Russell 2000 climbing up to 1% after the Federal Reserve resumed its rate-cutting cycle and signaled further easing. Optimism was also lifted by Nvidia’s plans to invest in Intel. European stocks opened on a firm note, but Asian markets traded lower as sentiment soured after the Bank of Japan kept rates unchanged and announced plans to sell its massive ETF holdings worth over 75 trillion yen, leading to declines in Japanese equities.

Technical Outlook:

* Nifty index opened flattish and witnessed a slight breather after the rally of the last ten sessions. It witnessed slight profit booking towards the end of the week and closed with losses of around 100 points but major support levels are respected so buy on dips narrative remains firmly intact. It has moved by more than 1000 points so far in the month of September and staged a spirited comeback.

* It formed a bearish candle on daily frame but with a longer lower shadow indicating smart buying at lower levels. It formed a bullish candle on the weekly frame and has been making higher lows from the last three weeks. Now it has to hold above 25250 zones for an up move towards 25500 then 25650 zones while supports can be seen at 25250 then 25100 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.33% at 25426 levels. Positive setup seen in Godrej Properties, Biocon, Ashok Leyland, Laurus Lab, Polycab, PNB, SBI, BOB, LTF, HAL, MCX, Hyundai, Bharti Airtel and Eternal while weakness in Exide Industries, Trent, SBI Card, ICICI GI, Concor, Cyient, Titan, BSE and United Spirits.

* On option front, Maximum Call OI is at 25400 then 25500 strike while Maximum Put OI is at 25300 then 25200 strike. Call writing is seen at 25400 then 25350 strike while Put writing is seen at 25300 then 25350 strike. Option data suggests a broader trading range in between 25000 to 25700 zones while an immediate range between 25100 to 25500 levels

Global Market Update

* European Market - European stocks rose, lifted by auto shares, after Stellantis NV was upgraded at Berenberg and auto supplier Aumovio started trading on the Frankfurt Stock Exchange day. Germany and France Index gained 0.3% and 1% respectively.

* Asian Market - Asian equities wiped out earlier gains to fall on Friday, as investor sentiment weakened following the Bank of Japan’s plan to offload its exchange-traded fund holdings. Equities in Japan dropped following the BOJ’s decision to leave the interest rate unchanged and announcement of the plan to sell its stockpile of ETFs valued at more than 75 trillion yen. Stock benchmarks in South Korea and Taiwan also fell.

* US Data - Net Long Term TIC Flow.

* Commodity - Brent Crude is trading at $67/bbl with US President Donald Trump pressing for lower prices while Ukraine escalates strikes on Russian energy facilities. OPEC's still-accelerating output is adding to expectations of a record 2026 surplus.

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