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Market Update

Nifty : 25,453.40 -88.40 (-0.35%)

Sensex : 83,409.69 -287.60 (-0.34%)

* Equity benchmark Sensex dropped nearly 300 points, while the Nifty closed below the 25,500 mark as investors booked profits ahead of the July 9 deadline for the implementation of US President Donald Trump's proposed tariffs. Market sentiment was further weighed down by slower growth in June GST collections, which rose 6.2% to Rs.1.85 lakh crore, and tepid June auto monthly sales data.

* Global markets delivered mixed cues, with concerns resurfacing over the potential escalation of tariffs by the US, especially after President Trump confirmed he would not delay next week’s tariff hike. Japan’s index notably declined on fears of increased levies on Japanese goods.

* The Nifty slipped 88 points, or 0.3%, to settle at 25,453, while the Sensex fell 287 points, or 0.3%, to end at 83,409. Sector-wise, financials, real estate, and defense stocks were under pressure, losing up to 1.5%. In contrast, cement and metal stocks witnessed renewed buying interest.

* The Nifty Metal Index jumped 1.5%, supported by a three-year low in the US Dollar Index and expectations of a potential rate cut by the US Federal Reserve. Stocks like Tata Steel, SAIL, JSW Steel, and Jindal Steel advanced 2–4%. Cement stocks rose on optimism around increased government infrastructure spending and a likely recovery in demand post-monsoon, with Ultratech Cement, India Cement, and Ambuja Cement gaining 2–3%.

* Newly listed HDB Financial Services, a subsidiary of HDFC Bank, surged nearly 14% to close at Rs.840, compared to its IPO price of Rs.740, with trading volume reaching 8 crore shares on the NSE.

Technical Outlook:

* Nifty index opened positive but failed to hold its morning high of 25608 and slipped lower throughout the day. It fell by 230 points during the day and broke below 25400 zones. Despite the minor attempts of recovery, Nifty struggled reflecting broader market profit booking after the recent gains.

* It formed a bearish candle on daily frame and closed with losses of around 90 points. Now it has to cross and hold above 25500 zones to witness a bounce towards 25650 and 25750 zones while supports are slightly shifting lower at 25250 then 25100 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.40% at 25539 levels. Positive setup seen in Ambuja Cements, SAIL, Fortis, SRF, Ultratech Cement, Amber, Dalmia Bharat, Biocon, Nykaa, Delhivery, Glenmark, Trent and Titan while weakness in Phoenix Mills, PFC, RVNL, REC, Exide Industries, Tata Technologies, Coal India, Dr. Reddy and HFCL.

* On option front, Maximum Call OI is at 25500 then 25600 strike while Maximum Put OI is at 25400 then 25000 strike. Call writing is seen at 25500 then 25600 strike while Put writing is seen at 25450 then 24400 strike. Option data suggests a broader trading range in between 25000 to 26000 zones while an immediate range between 25200 to 25700 levels.

Global Market Update

* European Market - European stocks advanced on deals news, as Banco de Sabadell SA agreed to sell its British unit and Spectris Plc received an offer from KKR & Co Inc. Both Germany and France Index are trading flat.

* Asian Market - Asian markets witnessed mixed bag amid tradewar worries after Donald Trump said he would not push back next week's tariff deadline, with Tokyo taking a hit from threats to ramp up Japanese levies.Japan Index declined 0.5% while Hong Kong and Australia Index gained 0.5% each.

* US Data - Mortgage Application.

* Commodity - Oil steadied after a modest advance with tensions in the Middle East and US inventories in focus. Brent crude traded near $67 a barrel.

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