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Market Update

Nifty : 26,032.20 -143.55 (-0.55%)

Sensex : 85,138.27 -503.63 (-0.59%)

* Equity Benchmark Nifty fell below 26100 levels due to broad-based profit-taking after recent highs and weak manufacturing growth data. Additionally, rupee depreciation amid soft foreign inflows added to the pressure. Concerns over a 14-month-low October IIP reading, weak November PMI data, continued foreign institutional investor (FII) selling, and falling GST collections further weighed on investor sentiment.

* Nifty dropped 130 points or 0.5% to close to at 26040. All sectors ended in red, except Nifty Pharma. Nifty Pharma saw renewed buying interest after Wockhardt’s announcement that the USFDA accepted the NDA for its novel, first-in-class antibiotic Zaynich—marking the first-ever acceptance of an NDA for a new chemical entity from an Indian pharma company.

* Stocks like Gland Pharma, Glenmark Pharma, Dr. Reddy’s Laboratories and Biocon advancing 1–2%.Bank Nifty and Nifty Defence took the biggest hits at 0.7% and 0.8%, respectively.

* The Bank Nifty's fall was partly due to NSE Indices Limited's announced revisions to its methodology, including expanding the index from 12 to 14 stocks and introducing tighter weight caps as per SEBI's circular aimed at reducing concentration risks and enhancing risk monitoring. This revamp, intended to improve trading convenience, caused some market adjustments. Defence stocks saw profit-booking after recent gains, contributing to their decline.

Technical Outlook:

* Nifty index opened with a gap down and after making attempts to hold 26150 levels in the first tick, it slipped lower throughout the day. It took support near the psychological 26k marks and closed with losses of around 140 points. Despite the intermittent selling, the hold of immediate support levels indicates some buying interest at lower levels.

* It formed a bearish candle on the daily frame and has started to form lower lows. Now it has to hold above 26000 zones for momentum to regain towards 26150 then 26250 zones while a hold below 26k would lead downside towards 25900 and then 25850 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.40% at 26228 levels. Positive setup seen in Union Bank, Asian Paints, Siemens, Canara Bank, Glenmark, Motherson, PNB, Dr Reddy, NMDC and Vedanta while weakness in IREDA, Delhivery, Indigo, Lodha, HAL, TMPV, Max Healthcare, Sail, JSW Energy and Jindal Steel.

* On option front, Maximum Call OI is at 26200 then 26300 strike while Maximum Put OI is at 25500 then 26000 strike. Call writing is seen at 26100 then 26200 strike while Put writing is seen at 26000 then 26100 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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