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Market Update

Nifty : 25,722.10 -155.75 (-0.60%)

Sensex : 83,938.71 -465.75 (-0.55%)

* Equity benchmark indices extended losses for the second straight session, with the Nifty slipping below the 25,800 mark amid concerns over the US-India trade deal and continued FII selling. Market sentiment was further dampened by a mixed set of quarterly earnings and weak global cues following the US Fed’s hawkish stance, indicating more rate cuts later this year. The Sensex declined 465 points, or 0.55%, to close at 83,938, while the Nifty ended 155 points lower at 25,722, down 0.60%. Overall, the Nifty has lost over 300 points, or 1.2%, in the past two sessions.

* Sector-wise, Nifty Metal, IT, and Pharma indices dropped up to 1%, whereas the PSU Bank index advanced 2%. Refinery stocks extended their upward rally on the back of strong quarterly results, with Chennai Petro, MRPL, HPCL, IOC, and BPCL rising up to 10%. Select defense stocks also gained after BEL reported robust earnings, leading its shares to climb 4% to ?426.

* Small- and mid-cap banking stocks moved higher following strong quarterly numbers from Union Bank and Canara Bank. Additionally, SEBI’s notification introducing new prudential norms for derivatives on the Bank Nifty index — aimed at ensuring a broader and more balanced composition — boosted sentiment in mid and small size banks. Canara Bank, PNB, Union Bank, UCO Bank, and Bank of Baroda surged between 2–4%.

* Globally, Asian and European markets ended mixed, while US Nasdaq futures gained over 1%, supported by upbeat earnings from Amazon.com Inc. and Apple Inc.

Technical Outlook:

* Nifty index opened negative and followed cues from the previous session to drop further towards 25700 zones. It cascaded throughout the day and closed with losses of around 150 points. It formed a bearish candle on the daily frame and profit booking persists.

* It has registered a fall of almost 400 points in this week and formed a bearish candle with longer upper wick which suggests that upside remains capped. Now it has to cross and hold above 25900 zones to again regain strength towards 26100 then 26277 zones while supports can be seen at 25700 then 25600 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.48% at 25907 levels. Positive setup seen in Union Bank, IDFC First Bank, BEL, Canara Bank, Aurobindo Pharma, Samman Capital, Shriram Finance, PNB, MCX and Oberoi Realty while weakness in Bandhan Bank, Mphasis, Eternal, Nykaa, VBL, IEX, NTPC, Pidilite Industries, DLF and Dabur.

* On option front, Maximum Call OI is at 26000 then 25900 strike while Maximum Put OI is at 25800 then 25700 strike. Call writing is seen at 25800 then 25900 strike while Put writing is seen at 25800 then 25700 strike. Option data suggests a broader trading range in between 25300 to 26100 zones while an immediate range between 25500 to 25900 levels.

Global Market Update

* Asian Market - Stocks in Asia gained, with an advance in Japanese and South Korean shares making up for declines in China and Hong Kong. Japan Index gained 2% after Hitachi’s earnings beat and outlook hike buoyed sentiment. Both China and Hong Kong Index declined 1.50% each.

* European Market - European stocks traded steady on the last day of the month, set for the fourth monthly gain in a row boosted by resilient earnings and trade optimism.

* US Data - Personal Income and Personal Spending.

* Commodity - Oil fell marginally to below $65/bbl as concerns about a global glut, with OPEC+ expected to back another supply hike this weekend.

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