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Market Update

Nifty : 25,423.60 +93.35 (+0.37%)

Sensex : 83,013.96 +320.25 (+0.39%)

* Equity benchmark Nifty crossed the 25,400 mark and Sensex advanced over 300 points, supported by strong global cues after the US Federal Reserve cut interest rates by 25 bps. Investor sentiment was further lifted as the Fed hinted at the possibility of two more rate cuts later this year. Optimism around India–US trade talks, GST reforms, and the boost to global liquidity from the Fed’s move also aided market momentum. The Nifty gained 93 points, or 0.4%, to close at 25,423, while the Sensex added 320 points, or 0.4%, to end at 83,013.

* Large-cap stocks attracted buying interest, while mid- and small-cap stocks traded in a narrow range. Pharma and IT were the standout gainers. Globally, US index futures, Asian, and European equities rose up to 1% after the Fed’s dovish stance reinforced hopes of additional rate cuts.

* The Nifty IT Index climbed nearly 1%, driven by a steady US Dollar Index and optimism over higher US spending. HCL Tech, Coforge, LTI Mindtree, and Infosys rose between 1– 2%. Pharma stocks also saw fresh traction, with the Nifty Pharma Index gaining 1.5%, led by Aurobindo, Biocon, Laurus Labs, and Glenmark Pharma, which advanced 1–4%.

Technical Outlook:

* Nifty index kick-started the session with a gap-up of nearly 100 points around 25441, and oscillated in a narrow 40-point band during the first half. As the day progressed, bears attempted to drag the index towards the 25350 territory, but in the final half hour, bulls staged a spirited comeback, lifting prices back near the day’s opening high. Despite intraday turbulence, the buy-on-dips narrative remained firmly intact.

* On the daily chart, Nifty formed a small-bodied candle with a longer lower shadow, clearly indicating buying interest near support levels. The index closed with gains of around 90 points and has now been forming a sequence of higher lows for the last seven sessions, reinforcing the positive undertone. Now it has to hold above 25350 zones for an up move towards 25550 then 25700 zones while supports have shifted higher to 25350 then 25200 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.34% at 25510 levels. Positive setup seen in Glenmark, Biocon, Mankind, Laurus Lab, Aurobindo Pharma, LTI Mindtree, AB Capital, Kfin Technologies, LTF and Eternal while weakness in Kalyan Jewellers, PI industries, Coal India, Solar Industries, Inox Wind, Cyient, Titan, Trent, Oil India, BSE and United Spirits.

* On option front, Maximum Call OI is at 25500 then 25400 strike while Maximum Put OI is at 25400 then 25300 strike. Call writing is seen at 25400 then 25500 strike while Put writing is seen at 25400 then 25450 strike. Option data suggests a broader trading range in between 24900 to 25900 zones while an immediate range between 25200 to 25700 levels.

Global Market Update

* European Market - European stocks advanced, boosted by the Federal Reserve’s quarter-point interest-rate cut, as investors turned their attention to US jobless claims data expected later today. UK, Germany and France Index gained up to 1%.

* Asian Market – Asian shares were mixed. Japan, Taiwan and South Korea Index surged over 1% each led by IT stocks following the Federal Reserve’s decision to cut its main interest rate. However, China and Hong Kong Index declined.

* US Data - Initial Jobless Claims

* Commodity - Oil held a decline as traders weighed a Federal Reserve interest-rate cut and an increase in US fuel inventories. Brent traded under $68 a barrel.

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