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Market Update

Nifty : 24,654.70 -236.15 (-0.95%)

Sensex : 80,426.46 -733.22 (-0.90%)

* Equity benchmark indices extended their losing streak for the sixth straight session as US President Donald Trump’s latest tariff measures—targeting pharmaceuticals, kitchen equipment, and heavy trucks—sparked broad-based selling. The Nifty 500 advance-decline ratio stood at a weak 1:9, reflecting widespread pressure across sectors.

* Fresh tariffs on branded and patented drugs, combined with last week’s steep H-1B visa fee hike and the Fed’s cautious stance on rate cuts, triggered sharp declines in IT and pharma stocks. FPIs added to the weakness with Rs.13,450 crore outflows so far in September. Pharma shares bore the brunt as the US announced a 100% tariff on branded and patented medicines effective October 1.

* The Sensex slumped 733 points, or 1%, to settle at 80,426, while the Nifty slipped 236 points, or 1%, to close at 24,654. Since the US visa fee hike announcement, the Nifty has dropped nearly 789 points, or 3%, in six sessions.

* All sectoral indices ended in the red, with Nifty IT tumbling 2.5% and Pharma losing 2.1%. Broader markets also retreated, with the Nifty Midcap 100 and Smallcap 100 sliding over 2% each. Defense and Metal indices were down 2% apiece.

* Globally, US markets fell around 0.5% overnight, while Asian and European equities saw mixed moves after Trump’s announcement of steep tariffs, including the 100% levy on branded pharmaceuticals.

Technical Outlook:

* Nifty index opened negative and cascaded southwards throughout the day and broke all the immediate support levels. The index has been making lower highs - lower lows from the last six sessions and wiped off nearly 820 points in this period. It formed a bearish candle on the daily frame and closed with losses of around 240 points.

* It formed a bearish candle on the weekly scale and broke the winning streak of the last three weeks. Now till it holds below 24700 zones weakness could be seen towards 24550 then 24442 zones while hurdles have shifted lower to 24700 then 24850 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 1.07% at 24700 levels. Positive setup seen in Larsen & Toubro, AU Bank, Ashok Leyland, Eicher Motors, Maruti, TVS Motor, and Samman Capital while weakness in HFCL, Biocon, PG Electroplast, IndusInd Bank, Zydus Life, OFSS, United Spirits, Syngene International, HUDCO, Naukri and UPL.

* On option front, Maximum Call OI is at 25000 then 24800 strike while Maximum Put OI is at 24500 then 24600 strike. Call writing is seen at 24800 then 24900 strike while Put writing is seen at 24500 then 24650 strike. Option data suggests a broader trading range in between 24200 to 25000 zones while an immediate range between 24500 to 24900 levels.

Global Market Update

* European Market - European market open on a positive note as investors look past President Trump’s latest tariff announcements including a 100% duty on branded or patented pharmaceuticals starting Oct. 1. Health care stocks did fall at the open but were quick to erase losses. Both Germany and France Index declined 0.3% each.

* Asian Market - Asian market declined as concerns about lofty valuations and mixed signals from Federal Reserve officials on interest rates stalled a record-breaking rally on Wall Street.

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

* Commodity - Brent crude gain in more than three months as US President Donald Trump increased pressure on buyers of Russian energy in a bid to end the war in Ukraine. Brent was steady above $69 a barrel on Friday.

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