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Market Update

Nifty : 26,013.45 +103.40 (+0.40%)

Sensex : 84,950.95 +388.17 (+0.46%)

* Equity benchmark Nifty closed above the 26,000 mark, while Bank Nifty and Nifty Midcap hit record highs, supported by strong quarterly earnings. Market sentiment improved further on the back of the favourable Bihar Assembly election outcome, October’s multi-year low inflation print and record monthly SIP inflows. Fed rate cut next month. Banking, Auto, and Capital Market stocks led today’s rally.

* Nifty advanced 103 points or 0.4% to end at 26,013. Among key performers, Eternal, Eicher Motors, Maruti Suzuki, Bajaj Auto, and Kotak Mahindra Bank rose 1–2%.

* Nifty PSU Banks climbed 1% after reports emerged of a renewed consolidation roadmap, with the government considering merging 12 banks into 6–7 larger entities. Initial combinations may involve smaller lenders merging with SBI or PNB. Stocks such as IOB, Bank of Maharashtra, Indian Bank, and Central Bank of India gained 2–4%.

* Capital Market stocks were strong, with newly listed Groww extending its upward trajectory and crossing the ?1 lakh crore market-cap milestone. The stock rallied 17.5% to ?174.4, while Angel One and IIFL Finance added 2–4%.

* Global markets were mixed across Asia and Europe amid lingering uncertainty over a potential Fed rate cut and ahead of the release of the U.S. FOMC minutes later this week.

Technical Outlook:

* Nifty index opened positive and continued buying cues from where it left in the previous week and soared to cross 26k marks. It witnessed a gradual up move throughout the day and the index was seen repeatedly finding support at minor retracements.

* It formed a bullish candle on the daily frame and finally closed near its day’s higher band with gains of around 100 points after successfully defending any intermediate pivots. Now it has to hold above 25900 zones for the next up move towards 26150 then 26277 zones while supports can be seen at 25900 then 25800 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.43% at 26061 levels. Positive setup seen in Hero Motocorp, Siemens, Angelone, AU Bank, LTF, IIFL, Paytm, Indian Bank, Larus Lab and Canara Bank while weakness in INOX Wind, Astral, Crompton, Mphasis, Hindustan Zinc, Ambuja Cements, Tata Steel, Supreme Industries, Syngene and Jubilant Foodworks.

* On option front, Maximum Call OI is at 26000 then 26100 strike while Maximum Put OI is at 25900 then 26000 strike. Call writing is seen at 26000 then 26100 strike while Put writing is seen at 25900 then 25950 strike. Option data suggests a broader trading range in between 25600 to 26400 zones while an immediate range between 25800 to 26200 levels.

Global Market Update

* Asian Market - Asian markets were mixed Monday amid simmering concerns that the Federal Reserve will not cut interest rates as hoped next month, while fears of a bubble continue to weigh on sentiment.

* European Market - European stocks were little changed after two negative trading days as investors await key events this week including the resumption of US data releases and earnings from Nvidia Corp. UK, Germany and France Index are trading flat to positive.

* US Data - Empire Manufacturing.

* Commodity - Oil dropped following signs that activity had resumed at the key Russian port of Novorossiysk on the Black Sea, after a Ukrainian strike last week led to some damage and a suspension of operations. Brent slipped below $64 a barrel after closing more than 2% higher on Friday.

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