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Market Update

Nifty : 25,056.90 -112.60 (-0.45%)

Sensex : 81,715.63 

 * Equity benchmarks Sensex and Nifty extended their losing streak to a fourth consecutive session, pressured by concerns over the India–US trade deal, persistent FII outflows, and uncertainty surrounding US H-1B visa rules. Weak global cues also weighed on sentiment after the US Federal Reserve struck a cautious tone on rate cuts, citing stubborn inflation and a resilient labor market.

* All major Nifty sectoral indices ended in the red, with the heaviest losses seen in IT, realty, mid- and small-cap, defense, and auto stocks, which declined up to 2%. The advancedecline ratio for Nifty 500 stood at 1:3, reflecting broad-based profit booking in the mid- and small-cap segments.

* At the close, Sensex dropped 386 points, or 0.5%, to 81,715, while Nifty shed 112 points, or 0.5%, to finish at 25,056. FMCG stocks bucked the trend, attracting fresh buying interest on expectations of improved rural demand from GST reforms. Hindustan Unilever, Tata Consumer, Nestle, and United Spirits each gained around 1%.

* Realty stocks were the biggest drag, with the Nifty Realty Index tumbling 2.5%, led by Godrej Properties, which slipped 4%, followed by DLF, Lodha, Prestige, and Oberoi Realty.

* Globally, US markets fell over 0.5% overnight, while European equities opened weaker, both pressured by Fed Chair Jerome Powell’s cautious comments on the pace of future rate cuts.

Technical Outlook:

* Nifty index opened positive but continued its weakness and dropped to 25000 zones. Despite the selling pressure it attempted to recover during mid-day but indecision between bulls and bears and a lack of clear directional momentum sunk it lower. It failed to hold above 25150 zones and closed with losses of around 110 points.

* It formed a bearish candle on the daily frame and has been making lower highs – lower lows from the last four sessions. Now it has to hold above the make or break zone of 25000 levels for an up move towards 25250 then 25350 zones else a hold below the same could see weakness towards 24900 and 24750 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.57% at 25113 levels. Positive setup seen in Kaynes Technology, Indian Bank, Power Grid, SBI Cared, NTPC, Tata Consumer, JSW Steel, Canara Bank, ONGC and LT while weakness in Godrej properties, PB Fintech, DLF, Bharat Forge, Inox Wind, Oberoi Realty, Tata Motors, Prestige Estate, Lodha, Coforge and IEX.

* On option front, Maximum Call OI is at 25500 then 25200 strike while Maximum Put OI is at 25000 then 25100 strike. Call writing is seen at 25100 then 25200 strike while Put writing is seen at 25000 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.

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