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Market Update

Nifty : 25,877.85 -176.05 (-0.68%)

Sensex : 84,404.46 -592.67 (-0.70%)

* Equity benchmark Sensex fell nearly 600 points, while the Nifty slipped below the 26,000 mark as profit booking and concerns over the US-China trade deal weighed on sentiment. A hawkish tone from the US Federal Reserve, which signaled limited scope for further rate cuts, also dampened investor confidence.

* Most major Nifty sectoral indices, including Metal, Banking, IT, Pharma, and FMCG, declined up to 1% due to profit-taking, while the Nifty Realty index managed to end marginally higher.

* In global markets, US index futures traded flat, and Asian as well as European markets showed a mixed trend after the meeting between US President Donald Trump and Chinese President Xi Jinping, which eased trade tensions but was largely factored into prices.

* The Nifty dropped 176 points, or 0.7%, to close at 25,877, while the Sensex declined 592 points, or 0.7%, to settle at 84,404. The Nifty 500 advance-decline ratio stood at 2:3, reflecting broad-based selling pressure.

* Overnight, US markets ended mixed as the Federal Reserve cut interest rates by 25 basis points for the second consecutive time but signaled a pause in further rate reductions for the remainder of the year.

Technical Outlook:

* Nifty index opened negative weighed by overnight global cues and fell throughout the day to break 25850 levels. Even though bulls were defending dips and despite intermittent attempts of recovery, profit booking brought down the overall sentiment for the session and it closed with losses of around 180 points.

* It formed a bearish candle on the daily frame and broke its higher highs formation of the last three sessions. 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 0.77% at 26037 levels. Positive setup seen in PB Fintech, BHEL, AB Capital, IIFL Finance, Canara Bank, NBCC, Oil India, Divis Lab, GMR Airport and BPCL while weakness in LIC Housing Finance, IEX, HFCL, Cipla, Indus tower, REC Ltd, VBL, Zydus Life, Dalmia Bharat and Syngene International.

* On option front, Maximum Call OI is at 26000 then 26100 strike while Maximum Put OI is at 25900 then 25500 strike. Call writing is seen at 26000 then 25900 strike while Put writing is seen at 25900 then 25950 strike. Option data suggests a broader trading range in between 25400 to 26300 zones while an immediate range between 25600 to 26100 levels.

Global Market Update

* Asian Market - Asian stocks turned lower after Donald Trump and Xi Jinping concluded a meeting that was seen as easing tensions between the world’s two largest economies but may have been largely priced into assets.

* European Market - European stocks fell after a slate of earnings as investors looked ahead to an interest-rate decision by the European Central Bank. Both Germany and France Index declined 0.4% each.

* US Data - GDP and Jobless claims.

* Commodity - Oil fell after a summit between Donald Trump and Chinese counterpart Xi Jinping that yielded progress on many sticking points, with differences over Russian crude imports not an issue of contention. Brent dropped toward $64 a barrel.

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