IGI Logo

Market Update

Nifty : 26,140.75 -37.95 (-0.14%)

Sensex : 84,961.14 -102.20 (-0.12%)

*  Indian equities extended losses for a third consecutive session, with the Sensex and Nifty edging lower amid selling pressure in heavyweight stocks, rising geopolitical concerns, and weak global cues that dampened investor sentiment. Continued selling by FIIs and delays in the US–India trade deal further weighed on market mood. Realty, auto, and financial stocks saw profit booking.

*  However, the broader market outperformed, as buying interest shifted toward mid- and small-cap stocks, both of which gained nearly 0.5%. Technology, pharma, and gems & jewelry stocks also witnessed a strong rally.

*  The Nifty slipped 37 points, or 0.1%, to close at 26,140, while the Sensex declined 103 points, or 0.1%, to end at 84,961. Cipla, HDFC Bank, Maruti, and SBI were among the top losers on the Nifty.

*  Gems and jewellery stocks such as Titan, PC Jeweller, Kalyan Jewellers, and PN Gadgil rose up to 10% after Titan and Kalyan Jewellers reported strong quarterly business updates. Technology stocks attracted fresh buying on expectations of healthy quarterly results, with the Nifty IT Index climbing nearly 2%, led by Tata Elxsi (up 9%), along with gains in Wipro, Infosys, KPIT Technologies, Persistent Systems, HCL Tech, and TCS.

*  Pharma stocks also saw renewed interest on hopes of robust earnings, pushing the Nifty Pharma Index up nearly 1%. Torrent Pharma jumped 4% to close at ?4,092, while Mankind Pharma, Wockhardt, IPCA Labs, Lupin, and JB Chemical advanced 2–3%.

Technical Outlook:

*  Nifty index opened negative and despite the attempts of recovery in the first tick, it failed to cross 26200 marks. It witnessed some smart buying in the last hour after taking support of 26050 zones. It formed a doji sort of a candle on the daily frame and has started to form lower highs – lower lows from the last two sessions. Now it has to cross and hold above 26150 zones for an up move towards 26250 and 26350 zones while supports can be seen at 26050 then 25950 zones.

• S&P BSE Sensex index negative note and witnessed some profit booking dragging the index towards 84700 zones. However in the final hour, the index staged a rebound and managed to close near the 85K mark. The index retested its 50 DEMA and found support near the same indicating buying interest at lower levels. On the daily chart it formed a small bodied candle though it continues to make lower lows from the last three sessions. Now it has to cross and hold above 85200 zone for an upside move towards 85500 then 85700 while hold below the same can see weakness towards 84700 and then 84400 zones.

Derivative Outlook:

*  Nifty future closed negative with losses of 0.18% at 26237 levels. Positive setup seen in Titan, Tata Elxsi, Persistent, Lupin, Manappuram Finance, MCX, Glenmark, Sun Pharma, VBL and BHEL while weakness in Cipla, NBCC, Max Healthcare, TMP, Indigo, Bajaj Finance, Bharti Airtel, BPCL, ITC and Indian Hotels.

*  On option front, Maximum Call OI is at 26200 then 26500 strike while Maximum Put OI is at 26100 then 26000 strike. Call writing is seen at 26200 then 26100 strike while Put writing is seen at 25100 then 26000 strike. Option data suggests a broader trading range in between 25700 to 26600 zones while an immediate range between 25900 to 26400 levels.

Global Market Update

*  European Market - European shares were muted as investors looked ahead to US jobs data. Energy stocks fell after President Donald Trump said Venezuela would send oil worth up to $2.8 billion to the US. UK, France and Germany Index marginally declined.

*  Asian Market - Asian equities declined, as escalating trade tensions between China and Japan damped investor sentiment following the recent rally. Both Japan and Hong Kong Index declined 1% each.

*  US Data - Mortgage Application and ADP Employment Change.

*  Commodity - Brent Crude - Oil prices have fallen sharply amid expectations over a surge in supply as US president Donald Trump said Venezuela would relinquish up to 50 million barrels of crude to the US. Brent crude dropped below $60/bbl.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412