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Market Update

Nifty : 25,046.15 -62.15 (-0.25%)

Sensex : 81,773.66 -153.09 (-0.19%)

* Equity benchmark Nifty ended slightly lower as investors booked profits after four consecutive sessions of gains, ahead of the release of the U.S. FOMC minutes later today. Market participants also adopted a cautious stance ahead of IT major TCS’s quarterly results due tomorrow. Profit booking was seen across sectors such as auto, defence, realty, FMCG, pharma, and financials, which fell up to 1.5%. However, buying interest emerged in technology stocks, with the Nifty IT index rising 1.5%.

* The Nifty slipped 62 points, or 0.2%, to close at 25,046. The advance-decline ratio for Nifty 500 stocks stood at 1:3, reflecting selling pressure in mid- and small-cap segments. IT stocks witnessed renewed buying interest ahead of TCS’s Q2 results, with Infosys, TCS, LTI Mindtree, Coforge, and HCL Tech gaining between 1% and 3%.

* In global markets, U.S. indices fell around 0.5% overnight as investors locked in profits after S&P 500 Index sharp 35% rally since April lows. Asian and European markets traded mixed amid cautious sentiment

Technical Outlook:

* Nifty index opened negative and after a slight ray of hope towards 25200 in the first hour, it sunk lower throughout the day. It took some pause near the psychological 25k marks where Nifty found firm footing.

* It formed a small bodied bearish candle with longer shadows on either sides which indicates swings and broke its higher highs – higher lows formation of the last four sessions. Now it has to hold above 25000 zones for an up move towards 25200 then 25350 zones while supports can be seen at 24900 then 24800 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.45% at 25112 levels. Positive setup seen in RBL Bank, Titan, National Aluminium, IIFL Finance, SBI Card, Coforge, KEI Industries, Federal bank, BPCL and Bharti Airtel while weakness in RVNL, IRFC, Titaghar Rail System, Oberoi Realty, IREDA, Dabur, NCC, PFC, HUDCO and Tata Motors.

* On option front, Maximum Call OI is at 25200 then 25100 strike while Maximum Put OI is at 25000 then 25100 strike. Call writing is seen at 25200 then 25100 strike while Put writing is seen at 25050 then 25100 strike. Option data suggests a broader trading range in between 24500 to 25500 zones while an immediate range between 24800 to 25300 levels.

Global Market Update

* Asian Market - Asian stocks fell, driven by losses in technology shares on fresh concerns over the justification for the artificial intelligence boom.

* European Market -European stocks gained as gold smashed past $4,000 an ounce for the first time, lifting mining shares. The French CAC 40 gained 0.6% after outgoing Prime Minister Sebastien Lecornu said there’s a shared will to have a budget by the end of the year and he plans to present solutions to President Emmanuel Macron by the end of the day.

* US Data - FOMC Meeting Minutes.

* Commodity - Oil prices rise in early trading but remain in a narrow range as investors weigh concerns over a looming supply surplus in global markets. Brent crude gain 1% to $66/bbl.

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