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Market Update

Nifty : 22,907.60 +73.30 (+0.32%) 

Sensex : 75,449.05 +147.79 (+0.20%)

* Equity benchmark indices extended their bullish momentum for the third consecutive session, with Nifty closing above the 22,900 mark, driven by gains in financials, heavyweight stocks, defense, and value buying in stocks that had been beaten down recently. Mid-cap and small-cap stocks outperformed, benefiting from value buying after experiencing a 25-35% decline in recent sessions. Both the Nifty 100 mid-cap and small-cap indices rose by 2.50% each. Despite weak sentiment on Wall Street ahead of the Federal Reserve’s monetary policy decision, domestic markets remained resilient, buoyed by positive macroeconomic factors and a Rs 1,500 crore net inflow from FIIs after a month-long gap. Additionally, the US Dollar Index fell to a five-month low of 103, further boosting market sentiment.

* Nifty ended the day with a gain of 0.32%, closing at a three-week high of 22,907 points, while the Sensex gained 0.22%, ending at 75,468 points, also a three-week high. Defense stocks had a strong performance, with the Nifty defense index rising 4%, marking the biggest gain of the day. Mazagon Dock surged 10% intra-day, and GRSE hit its 20% upper circuit limit. Other top gainers included Cochin Shipyard (+8.8%), HAL (+4.4%), Bharat Dynamics (+6%), and BEL (+2%). This rally in defense stocks is attributed to rising exports and strong government orders.

* All major sectoral indices, except for IT and FMCG, finished in the green, with metals gaining significant interest due to the 12% safeguard duty recommended by the Directorate General of Trade Remedies (DGTR) on the import of certain steel products to curb imports. On the global front, both Asian and European markets showed mixed reactions ahead of the US Fed interest rate decision, while the Bank of Japan kept its interest rate unchanged at 0.50%, as expected.

Technical Outlook:

* Nifty opened on a positive note near 22900 zone but saw an initial dip towards 22800. However, the index quickly reclaimed the 22900 level. Throughout the day, the index remained range-bound within 60-70 points, suggesting a lack of strong momentum. However, sustained buying at lower levels indicates strength of the bulls.

* It formed a small bodied bullish candle on daily chart and forming higher high - higher lows from last three trading sessions which shows supports are shifting higher. Now it has to hold above 22700 zones for an up move towards 23000 then 23250 zones while supports can be seen at 22700 then 22500 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.32% at 22969 levels. Positive setup seen in PB Fintech, Max Healthcare, HUDCO, Prestige Estate, Lodha, Poonawalla Fincorp, BSE, Escorts, CAMS, IRFC, Tata Power and PEL while weakness in Phoenix Mills, TECHM, LTIM, ITC, United Spirits, TCS, Britannia Industries, INFY, Nykaa, Maruti and Bsoft.

* On option front, Maximum Call OI is at 23300 then 23000 strike while Maximum Put OI is at 22500 then 22800 strike. Call writing is seen at 23300 then 22900 strike while Put writing is seen at 22900 then 22800 strike. Option data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22700 to 23100 levels.

* Vodafone Idea shares surge nearly 5% on 5G Rollout in Mumbai – Company announced the launch of its 5G services in Mumbai. Telecom major highlighted that its 5G rollout will leverage next-generation equipment through a partnership with Nokia. The network is designed to be leaner and more energy-efficient, promoting sustainability.

* NBCC – Company sold 1,046 residential units worth Rs 2,353 crore in Uttar Pradesh via e-auction.

* Tata Consultancy Services - Company signed a five-year deal with Air New Zeland to drive AI-led transformation to enhance the airline's digital capabilities and improve customer experience.

* Tata Motors – Company’s board approved the issuance of NCDs aggregating up to Rs 2,000 crore.

* REC – Company announced board declared fourth interim dividend of Rs 3.6 per share for FY25.

* Transrail Lighting – Company received orders worth Rs 1,647 crore in transmission and distribution segment and railway segments.

* Insolation Energy - Company received a purchase order worth Rs 733 crore for supply of Solar PV module from KPI Green Energy.

* KPI Green Energy – Company received Rs 272 crore credit from NaBFID to part-finance Gujarat Power Project.

* IndiGo – Company has announced ambitious growth plans, projecting a doubling of passenger numbers in India by 2030, from 25.2 crore to 51 crore. The airline aims to increase its international capacity share to 40% by FY30, up from 28% currently. To support this expansion, IndiGo has a significant aircraft order backlog of 925 planes, with plans to reach a fleet size of over 600 aircraft by 2030. The airline expects to take delivery of A321 XLR aircraft in FY26, which will be deployed on routes across Asia and Europe. Additionally, IndiGo aims to boost ancillary revenue and grow its loyalty program, which has already seen 20 lakh enrollments in just five months.

* GR Infraprojects – Company announced that it has won Rs 4,263-crore order from NHAI.

Global Market Update

* European Market - European stocks snapped a three-day winning streak on growing uncertainty around a ceasefire in Ukraine, while investors awaited the Federal Reserve’s rate decision later in the day. UK and Germany’s DAX declined 0.2% each while France Index marginally gain.

* Asian Market - Asian stocks were mixed as traders await more clues on the economic outlook from the Federal Reserve’s policy decision later Wednesday. Chinese benchmarks were mixed as uncertainties lingered over Beijing’s policy-direction in boosting consumer spending and stoking local demand. China and Hong Kong Index marginally gain. Japan Index declined marginally from the intra-day high after the Bank of Japan kept unchanged interest rate at 0.50% - inline with expectation.

* US Data - FOMC Interest rate decision.

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