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Market Update

Nifty : 25,541.80 +24.75 (+0.10%)

Sensex : 83,697.29 +90.83 (+0.11%)

* Equity benchmarks Sensex and Nifty ended marginally higher as investors remained cautious ahead of the anticipated US-India trade agreement, with the deal deadline set for July 9. Gains in heavyweight stocks such as Reliance Industries, Ultratech Cement, and HDFC Bank provided key support to the indices.

* India's Manufacturing PMI for June came in at a 14-month high, crossing the 58 mark, which, along with optimism surrounding the US-India trade talks expected to conclude by the end of the week, helped boost market sentiment.

* The session witnessed stock-specific movements, with sustained momentum in PSU banks, select defense stocks, and mid-cap counters. However, the Nifty Auto Index ended slightly lower following the release of mixed June auto sales data.

* The Nifty advanced by 24 points, or 0.1%, to close at 25,541, while the Sensex gained 91 points, also up 0.1%, ending the day at 83,697. In the broader market, select small and mid-cap banking names such as RBL Bank, PNB, Karur Vysya Bank, and City Union Bank surged between 2–5%. Among auto stocks, Eicher Motors rose 1% to close at ?5,715 after reporting a strong 22% year-on-year growth in June sales.

* Globally, US markets closed at record highs overnight, driven by optimism over potential trade agreements and expectations of a rate cut by the Federal Reserve. In contrast, Asian and European markets were mixed. Japan’s benchmark index dropped 1.2% after US President Donald Trump threatened new tariffs on Japanese goods, including rice and automobiles. South Korean and Taiwanese markets also showed mixed trends.

Technical Outlook:

* Nifty index opened positive but witnessed some pressure and failed to hold its opening high and could not cross 25600 marks. Minor profit booking was seen till midday until it took support at 25500 levels and witnessed consolidation for the rest of the session. Buyers attempted to stabilize prices near support levels but struggled to overcome the early selling pressure zone. Despite the tug of war within a band of less than 100 points, it managed to close near 25550 levels in minor gains.

* It formed a Doji sort of a candle and an inside bar on daily frame and now if it manages to hold above 25500, up move could be seen towards 25650 and 25750 zones while supports can be seen at 25400 then 25250 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.09% at 25638 levels. Positive setup seen in Apollo Hospitals, RBL Bank, PNB, CESC, Laurus lab, BEL, Hindustan Copper, AB Capital, Reliance, Jio Fin, MCX, Amber and LTF while weakness in Axis Bank, Naukri, United Spirites, Concor, KPIT Technologies, Granules, VBL, Chambal Fertilizers and Inox Wind.

* On option front, Maximum Call OI is at 25600 then 26000 strike while Maximum Put OI is at 25500 then 25000 strike. Call writing is seen at 25550 then 25600 strike while Put writing is seen at 25500 then 25400 strike. Option data suggests a broader trading range in between 25000 to 26000 zones while an immediate range between 25300 to 25700 levels.

Global Market Update

* European Market - European stocks edged higher on signs that the region was getting closer to striking a trade agreement with the US. Both Germany and France Index are trading flat.

* Asian Market - Asian stocks rose Tuesday amid optimism countries will strike US trade deals, but Tokyo's Nikkei sank after Donald Trump threatened to impose a fresh tariff rate on Japan as he hit out at Japan over rice and autos. Japan Index declined 1.2% while South Korea and Taiwan Index gained 1. each.

* US Data - Manufacturing PMI and Jolts Job opening.

* Commodity - Oil steadied around the lowest level since early June, with the focus turning to how much OPEC+ will increase output quotas this weekend. Brent crude traded below $67 a barrel.

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