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Market Update

Nifty : 24,741.00 +6.70 (+0.03%)

Sensex : 80,710.76 -7.25 (-0.01%)

* Equity benchmarks Sensex and Nifty ended flat, with the focus shifting to mid- and small-cap stocks. Market sentiment was supported by the government’s sharp GST rate cuts, upbeat macroeconomic data, and hopes of a U.S. Fed rate cut, which also lifted global equities.

* Nifty inched up 6 points to close at 24,741. Sector-wise, Nifty Metal and Auto indices gained around 1% each, while IT, Realty, and FMCG slipped up to 1.5% on profit booking.

* Stock-specific moves dominated the session—auto majors Eicher Motors and M&M rallied 2% each to record highs after GST on vehicles was reduced from 28% to 18%. In metals, GMDC jumped 11% to Rs.509, while National Aluminum, NMDC, and Vedanta gained up to 2%.

* Globally, both Asian and European markets advanced, as investors awaited key U.S. payroll data and monitored bond market volatility.

Technical Outlook:

* Nifty index opened on a positive note around the 24820 zone but faced profit booking in the first half of the session, dragging the index down to test the 24650 zone where it took support near its 100-DEMA. However, in the later part of the day, bulls regained control and triggered a recovery from lower levels, highlighting the ongoing buy-on-dips setup.

* On the daily chart, the index formed a bearish candle with a long lower shadow, indicating strong support based buying and dominance of bulls at lower levels. On the weekly scale, Nifty has formed an inside bar pattern, reflecting consolidation within a broader range. Now it has hold above 24700 zones for an up move towards 24850 then 25000 zones while supports can be seen at 24650 and 24500 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.09% at 24849 levels. Positive setup seen in Ashok Leyland, Glenmark, M&M, Voltas, Astral, Biocon, National Aluminium, Uno Minda, Nykaa and AB Capital while weakness in VBL, Prestige Estate, Persistent system, Torrent Power, ITC, Oberoi Realty, Godrej Properties, Siemens, Divis lab and PI Industries.

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

Global Market Update

* European Market - European stocks were subdued as investors awaited a key US payrolls report and tracked the bond market’s recent volatility. Both Germany and France Index gain 0.3% each.

* Asian Market - Asian stocks rose, on track for a weekly advance, supported by a rebound in Chinese equities as well as bullish sentiment around a US-Japan trade deal. Japan Index gained 1% led by auto shares after Donald Trump signed an executive order confirming a deal that limits US tariffs on the sector to 15%, lifting investor sentiment. Both China and Hong Kong Index surged 2% and 1% respectively.

* US Data - Non-farm Productivity and Initial Jobless Claims.

* Commodity - Oil dropped for a second day as traders fretted that OPEC+ may agree to boost supplies, US data pointed to a slowdown, and an industry estimate showed higher crude stockpiles at a key storage hub. Global benchmark Brent fell below $67 a barrel.

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