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Market Update

Nifty : 26,250.30 -78.25 (-0.30%)

Sensex : 85,439.62 -322.39 (-0.38%)

* Equity benchmark Nifty slipped close to 100 points to end below the 26,300 mark, weighed down by sharp selling in IT stocks and weakness in heavyweights such as Reliance Industries and HDFC Bank. Profit booking emerged near record highs of 26,373, while continued FII outflows and rising geopolitical tensions kept market sentiment cautious. Despite the broader weakness, strong buying interest was visible in Financials, Realty, select PSU Banks, and Defence stocks. Nifty closed lower by 78 points, or 0.3%, at 26,250, while the Nifty 500 advance–decline ratio of 1:1 indicated a shift in buying interest towards midcap and smallcap stocks.

* The Nifty Defence index surged over 2% amid expectations of higher spending on rail infrastructure and defence following escalating geopolitical tensions. Stocks such as MTAR Technologies, Data Patterns, BDL, Solar Industries, and Paras Defence advanced 3–5%. The Nifty Realty index gained 2% after Sobha posted a strong Q3 business update, reporting a 52% year-on-year growth in December quarter sales driven by robust demand. Realty stocks including Sobha, Lodha, Godrej Properties, Prestige Estates, and DLF rose 1–5%.

* The Nifty FMCG index climbed nearly 1% after Marico announced a healthy quarterly business update, with stocks like Nestle, Patanjali, Marico, and Britannia gaining 1–3%. Gems and jewellery stocks also witnessed fresh buying after PC Jeweller reported a solid 37% revenue growth in Q3FY26. Globally, Asian markets rallied up to 3%, led by technology stocks, while European markets edged higher as investors looked beyond geopolitical tensions following the US attack on Venezuela.

Technical Outlook:

* Nifty index opened positive to touch a record high level of 26373 in the first half of the session after which it witnessed some profit booking. After the thrust to life high zones, the index sunk but respected its support of 26200 zones. It formed a bearish candle on the daily frame to close with losses of around 80 points but continues to make higher highs – higher lows from the last four sessions. Now it has to hold above 26250 zones for an up move towards 26400 and 26500 zones while supports can be seen at 26150 then 25050 zones.

* S&P BSE Sensex index opened on a positive note but failed to sustain follow through buying. Bears remained in control throughout the session and bounces were answered by selling pressure. On the daily chart the index formed a bearish candle with wicks on both ends indicating buying interest near support levels but upside momentum remaining limited. Now it has to hold above 85300 zones for an up move towards 85600 then 85800 zones while on the downside supports are seen at 85200 then 85000 levels.

Derivative Outlook:

* Nifty future closed negative with losses of 0.48% at 26329 levels. Positive setup seen in BEL, Union Bank, Muthoot Finance, Marico, Tata Steel, Au Bank, APL Apollo, JSW Energy, Axis Bank and Hero Motocorp while weakness in Infosys, Dixon, CG Power, Bajaj Finance, Max Healthcare, Jubiliant Foodworks, KPIT Technologies, Coforge, Tata Technologies and Eternal.

* On option front, Maximum Call OI is at 26300 then 26400 strike while Maximum Put OI is at 26200 then 26000 strike. Call writing is seen at 26300 then 26250 strike while Put writing is seen at 26200 then 26250 strike. Option data suggests a broader trading range in between 25800 to 265700 zones while an immediate range between 26100 to 26500 levels.

Global Market Update

* European Market - European stocks advanced as investors looked past geopolitical tensions from the US attack on Venezuela. UK, France and Germany Index gained 0.3% each.

*  Asian Market - Asian equities rose to a record high, supported by gains in tech-heavy markets such as Taiwan and Japan, as investors look past geopolitical risks surrounding Venezuela. Japan, South Korea and Taiwan Index gained nearly 3% each.

* US Data - PCE price Index, Personla Income and Personal Spending.

* Commodity - Brent Crude - Oil prices fell 1% to $60/bbl after the US operation to oust Venezuelan president Nicolás Maduro created uncertainty over the future of the world’s largest crude reserve.

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