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Market Update

Nifty : 25,083.75 +33.20 (+0.13%)

Sensex : 82,000.71 +142.87 (+0.17%)

* Equity benchmark Nifty touched nearly the 25,100 mark while the Sensex gained over 100 points, with both indices extending their winning streak to a sixth straight session, supported by buying in healthcare, realty, and select defense stocks. Market sentiment improved on hopes of major GST reforms after the Group of Ministers (GoM) recommended reducing the structure to just two rates, suggesting scrapping the existing 18% and 28% slabs. Adding to the positive mood, the August HSBC Composite, Manufacturing, and Services PMIs hit all-time highs, underscoring strong domestic economic growth despite the U.S. decision to impose a 50% tariff on Indian goods.

* The Nifty ended 33 points higher, or 0.1%, at 25,083, while the Sensex advanced 142 points, or 0.2%, to close at 82,000. The Nifty Realty Index rose 1%, with stocks like Anant Raj, Prestige Estates, Sobha, Godrej Properties, DLF, Oberoi Realty, Lodha, and Phoenix Mills climbing up to 4% intraday, supported by expectations that raw material costs may fall if higher GST rates currently applied are shifted into lower brackets.

* Pharma stocks also witnessed renewed buying interest, with the Nifty Pharma Index gaining 1% led by Cipla, Sun Pharma, Dr. Reddy’s, and Laurus Labs. On the downside, exchange-related names such as BSE Ltd and broking firms dropped sharply following reports that the markets regulator may extend the tenure and maturity of equity derivatives contracts.

* Globally, U.S., Asian, and European markets ended lower after U.S. Fed officials struck a hawkish tone in their meeting minutes.

Technical Outlook:

* Nifty index opened gap up by 100 points and after the initial swing in the first hour, it consolidated for most part of the day. Trend progression took the index above 25150 towards the day end but it again sunk lower but managed to close above the previous day’s closing levels.

* It formed a bearish candle on the daily frame as it closed lower than its opening zones but it continued to form higher lows from the last eight sessions. Now it has to hold above 25000 zones for an up move towards 25150 then 25250 zones while supports can be seen at 24900 then 24800 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.11% at 25110 levels. Positive setup seen in L&T Finance, Dr. Reddy, Mphasis, Cipla, AB Capital, Siemens, Cummins India, TVS Motors, Titan and Laurus Lab while weakness in BSE, Angel One, MCX, JSW Energy, HFCL, ABFRL, IIFL, Crompton, Tata Elxsi and IndusInd Bank.

* On option front, Maximum Call OI is at 25500 then 25200 strike while Maximum Put OI is at 25000 then 24500 strike. Call writing is seen at 25600 then 25100 strike while Put writing is seen at 25100 then 25000 strike. Option data suggests a broader trading range in between 24600 to 25600 zones while an immediate range between 24800 to 25300 levels.

Global Market Update

* European Market - European stocks were muted after three days of gains as investors awaited business activity data, with focus also on the Federal Reserve’s Jackson Hole economic symposium. . Both Germany and France Index decline 0.4% each.

* Asian Market - Asian markets were varied during cautious trading sessions on Thursday, one day before a key speech expected to offer signals about future interest rate cuts in the United States.

* US Data - Initial Jobless Claims, Manufacturing PMI, Service PMI and Composite PMI.

* Commodity - Brent crude gained 2% to $67/bbl after US crude stockpiles shrunk the most since mid-June, keeping inventories well below the seasonal average.

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