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Market Update

Nifty : 25,005.50 +32.40 (+0.13%)

Sensex : 81,548.73 +123.58 (+0.15%)

* Equity benchmark Nifty ended at a near one-month high, crossing the 25,000 psychological mark, though trading remained range-bound ahead of the release of key US inflation data later today. The index inched up 32 points, or 0.1%, to close at 25,005. Over the past six sessions, however, Nifty has rallied more than 290 points, or 1.3%, supported by the government’s GST reforms, expectations of a US Fed rate cut, and improving sentiment around US–India trade talks.

* Caution persisted in the market due to sustained FII selling and the rupee hitting a record low of 88.44 against the dollar. Stock-specific moves drove action, with PSU banks, pharma, and oil marketing companies gaining up to 1%. Aurobindo Pharma jumped over 5% to Rs.1,109 after reports that it has emerged as the frontrunner to acquire Praguebased generic drug maker Zentiva for $5–5.5 billion (Rs.43,500–47,900 crore) from Advent International.

* On the flip side, IT stocks underperformed, with the Nifty IT index slipping 0.4%. Infosys declined 1% ahead of its board meeting on a proposed share buyback, though the stock has already gained 7% over the last two sessions since the announcement. Broader markets were subdued, with mid- and small-cap shares flat, and the Nifty 500 advancedecline ratio at 1:1, reflecting a range-bound trend.

* Globally, Asian and European markets were mixed as investors awaited the European Central Bank’s rate decision and the upcoming US inflation data.

Technical Outlook:

* Nifty index opened flattish and crossed the psychological 25k marks in the first hour after which it steadily moved northwards signaling underlying bullish momentum. It crossed its morning high in the second half of the day and managed to close at its higher band above 25000 zones.

* It formed a bullish candle on the daily frame and has been making higher highs - higher lows from the last four sessions. Now it has hold above 24950 zones for an up move towards 25150 then 25250 zones while supports have shifted higher to 24900 and 24800 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.15% at 25110 levels. Positive setup seen in Aurobindo Pharma, NHPC, GAIL, National Aluminium, CG Power, Adani Enterprise, SAIL, IOC, Tata Chemical and Britannia while weakness in Angel One, BSE, Sona BLW, Ambuja Cement, IIFL Finance, Naukri, CDSL, PB Fintech, Trent and SBI Life.

* On option front, Maximum Call OI is at 25000 then 25200 strike while Maximum Put OI is at 25000 then 24800 strike. Call writing is seen at 25400 then 25200 strike while Put writing is seen at 25000 then 24900 strike. Option data suggests a broader trading range in between 24500 to 25500 zones while an immediate range between 24800 to 25200 levels.

Global Market Update

* European Market - European stocks were muted as investors awaited an interest-rate decision from the European Central Bank and key US inflation data. Both Germany and France Index are trading flat.

* Asian Market - Asian market witnessed mixed. Japanese equity indexes closed at a fresh record on gains in tech-related shares after a US rally driven by semiconductor and technology stocks pushed the S&P 500 index to a new high.

* Commodity - Oil steadied at $67/bbl after a three-day gain as traders weighed Donald Trump’s latest comments regarding Russia and whether the US president will follow through with measures to punish Moscow for the Ukraine war.

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