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Market Update

Nifty : 25,860.10 -167.20 (-0.64%)

Sensex : 84,679.86 -533.50 (-0.63%)

* Equity benchmarks Sensex slipped over 500 points and the Nifty fell below the 25,900 mark amid broad-based selling pressure. Market sentiment was hit by persistent foreign investor outflows, a sharply depreciating rupee touching a fresh record low against the US dollar, and ongoing uncertainty over a potential trade agreement with the United States. Weak global cues further weighed on markets, with investors adopting a cautious stance ahead of key US jobs data and an upcoming Bank of Japan rate decision.

* The rupee tumbled to a new all-time low of 91.08 against the dollar, driven by heavy foreign fund outflows. The Sensex declined 533 points, or 0.6 percent, to close at 84,680, while the Nifty fell around 167 points, breaching the psychologically important 26,000 level to close at 25,860.

* Midcap and smallcap stocks remained under pressure, with both indices dropping nearly 1 percent. Sectorally, Nifty Auto, Metal, Banking, Realty and Defence indices slipped about 1 percent each. Despite the broader weakness, select FMCG and fertilizer stocks witnessed fresh buying interest. Market breadth was negative, with the Nifty 500 advance-decline ratio at 1:3, reflecting aggressive selling in mid- and small-cap stocks.

* Globally, both Asian and European markets declined as AI-related shares extended losses following a further slide in Oracle, while caution prevailed ahead of key global macro events.

Technical Outlook:

* Nifty index opened negative near 25950 zones and failed to hold above those levels right from the initial tick. It witnessed minor attempts of recovery but gave in to selling pressure towards the end of the session and closed with losses of around 170 points.

* It formed a bearish candle on the daily frame and has now started to form lower highs – lower lows from the last two sessions. Now till it holds below 25900 zones, weakness could be seen towards 25700 then 25600 zones while hurdles have shifted lower to 26000 then 26100 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.68% at 25932 levels. Positive setup seen in Vedanta, Titan, Godrej CP, Voltas, Tata Consumer, Ashok Leyland, AU Bank and Kotak Mahindra while weakness in Eternal, Axis Bank, BDL, JSW Steel, SAIL, NCC, Biocon, BSE, Mazdock, HAL, RBL Bank and RVNL.

* On option front, Maximum Call OI is at 26000 then 26100 strike while Maximum Put OI is at 25500 then 25900 strike. Call writing is seen at 26000 then 25900 strike while Put writing is seen at 25500 then 25900 strike. Option data suggests a broader trading range in between 25500 to 26200 zones while an immediate range between 25600 to 26100 levels.

Global Market Update

* European Market - European stocks declined and the dollar hovered near two-month lows as investors reined in risk ahead of key US economic data that will offer clues on the path for interest rates. Both Germany and France Index slipped 0.2% each.

* Asian Market - Asia market sharply declined as AI-related shares continued their decline following a further slide from Oracle, and investors turned cautious ahead of US jobs data and an upcoming Bank of Japan rate decision. Japan, Hong Kong, South Korea and China Index declined 1% each.

* US Data - Non-farm payroll, Unemployment rate and Retail sales.

* Commodity - Brent Crude extended declines after hitting the lowest level since 2021 as traders weighed the outlook for a ceasefire in Ukraine, which could pave the way for fewer curbs on Russian crude flows into an oversupplied market. Brent Crude decline 1% to $60 a barrel.

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