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Market Update

Nifty : 24,712.05 -255.70 (-1.02%)

Sensex : 80,786.54 -849.37 (-1.04%)

* Equity benchmarks ended sharply lower as the Sensex slipped over 800 points and the Nifty closed below the 24,750 mark, weighed down by broad-based selling after the U.S. issued a draft notification to impose tariffs of up to 50% on Indian goods starting Wednesday. Market sentiment was further hit by persistent FII outflows and a jump in crude oil prices to a one-month high of $69/bbl. Profit booking ahead of Wednesday’s trading holiday and the expiry of the August F&O series on Thursday also added pressure.

* Globally, U.S., Asian, and European markets fell around 1% as investors grew concerned about the Federal Reserve’s independence following President Donald Trump’s move to dismiss Fed Governor Lisa Cook.

* The Sensex declined 849 points, or 1%, to settle at 80,786, while the Nifty dropped 255 points, or 1%, to close at 24,712. The advance-decline ratio on the Nifty 500 stood at 1:9, reflecting heavy selling in mid- and small-cap stocks. Sectorally, Nifty Pharma, Banking, Metal, Defense, and Realty indices fell 1–2%.

* In contrast, consumption-driven sectors showed resilience, supported by the government’s GST reform measures aimed at boosting growth. The Nifty FMCG index rose 1%, led by Britannia, HUL, Nestle, and Dabur, which gained 1–4%. Among autos, Maruti advanced 2% to Rs.14,798 after announcing plans to invest Rs.70,000 crore in India over the next five to six years, while Eicher Motors surged 3% to Rs.6,174 on expectations of rising rural sales.

Technical Outlook:

* Nifty index opened negative and slipped right from the initial hour and each upward attempt was swiftly met with selling pressure. It breached its immediate support zones and broke 24700 levels in the last hour of the trade.

* It formed a big bearish candle on the daily frame and closed with losses of around 260 points. Now till it holds below 24850 zones weakness could be seen towards 24650 then 24500 zones while hurdles can be seen at 24850 then 25000 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 1.06% at 24724 levels. Positive setup seen in Britannia, Eicher Motors, Maruti, Granules, HUL, Nykaa, Nestle India, Jindal Stainless, L&T Finance and Dalmia Bharat while weakness in PG Electropast, KFIN Technologies, Vedanta, Angel One, Shriram Finance, MCX, Bandhan Bank, LT, BSE and Indus Tower.

* On option front, Maximum Call OI is at 25000 then 24800 strike while Maximum Put OI is at 24700 then 24500 strike. Call writing is seen at 24800 then 24900 strike while Put writing is seen at 24750 then 24700 strike. Option data suggests a broader trading range in between 24200 to 25200 zones while an immediate range between 24500 to 24900 levels.

Global Market Update

* European Market - French stocks are the worst-performers in Europe on Tuesday after Prime Minister Francois Bayrou unexpectedly announced a confidence vote for next month, prompting a selloff in local assets. Germany and France Index slipped 1% each.

* Asian Market - Asian stocks fell up to 1% as sentiment weakened after President Donald Trump’s move to oust Federal Reserve Governor Lisa Cook sparked concerns about the central bank’s independence.

* US Data - Durable Goods Order and Consumer Confidence.

* Commodity - Brent Crude dropped 1% to $68/bbl after a four-day gain as investors waited for clearer signals on supplies, while also tracking the wider market fallout from President Donald Trump’s move to oust a Federal Reserve governor.

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