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Market Update

Nifty : 25,694.95 +120.60 (+0.47%)

Sensex : 83,871.32 +335.97 (+0.40%)

* Equity benchmark Nifty staged a strong rebound, recovering over 1% from its intraday low and closing with solid gains near the 26,700 mark, supported by optimism following U.S. President Trump’s positive comments on the US-India trade deal. Improved quarterly earnings and a rally in global markets further lifted investor sentiment.

* The Nifty ended 121 points higher, or 0.50%, at 25,695 after hitting an intraday low of 25,449. The Nifty Midcap Index also gained 0.50%, while the Smallcap Index closed marginally lower.

* Sector-wise, the Nifty Defence Index was the top performer, surging 2.4% on the back of strong order inflows and robust earnings. The Nifty IT Index advanced over 1%, buoyed by optimism around the US-India trade discussions and expectations of an end to the U.S. government shutdown.

* In the metal space, Hindustan Copper and National Aluminium rose 6% and 3%, respectively, following strong quarterly results. Defense major BEL climbed 2.5% to ?427 after securing an order worth ?792 crore, while Bharat Forge jumped 5% on upbeat Q2 earnings.

* Technology shares such as Infosys, Coforge, Persistent Systems, HCL Tech, and LTI Mindtree gained between 1–3%.

* Globally, U.S. markets rallied 2% overnight, while Asian and European markets showed a mixed but positive bias. Sentiment improved after reports indicated that U.S. lawmakers were moving closer to resolving the country’s longest-ever government shutdown, a development expected to provide clarity on the Federal Reserve’s interest rate outlook.

Technical Outlook:

* Nifty index opened on a positive note and after sinking to 25450 levels in the first half of the session, it later recovered unilaterally and established the bullish stance. Smart buying was seen at lower levels and the index crossed 25700 zones to close near its higher band with gains of around 120 points.

* It formed a bullish candle on the daily frame with longer lower shadow and has started to form higher highs from the last two sessions. Now it has to hold above 25650 zones for momentum to continue towards 25800 then 25950 zones while supports have shifted higher to 25550 then 25450 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.53% at 25831 levels. Positive setup seen in BHEL, Ashok Leyland, BEL, Angelone, IOC, M&M, JSW Steel, HCL Tech, Biocon and Auro Pharma while weakness in Bajaj Finserv, Divis Lab, Sammaan Capital, Siemens, CG Power, Crompton, Havells, Piramal Pharma and Apollo Hospital.

* On option front, Maximum Call OI is at 25700 then 25800 strike while Maximum Put OI is at 25600 then 25000 strike. Call writing is seen at 25600 then 25700 strike while Put writing is seen at 25600 then 25500 strike. Option data suggests a broader trading range in between 25200 to 26100 zones while an immediate range between 25500 to 25900 levels.

Global Market Update

* Asian Market - Asian equities fluctuated, as investors weighed progress from ending the US government shutdown against lingering risks including stretched tech valuations and the prospect of renewed trade frictions. Japan, Hong Kong, South Korea and Taiwan Index declined from the intra-day high and ended marginally lower.

* European Market - European gaming stocks are outperforming the broader market on Tuesday as Sony Group raised its profit outlook after reporting stronger-than-expected earnings, buoyed by its entertainment portfolio. UK, Germany and France Index gained up to 0.7%.

* US Data - Small Business Optimism.

* Commodity - Oil fell as traders tracked softening market metrics, and waited for reports that may give clues about an impending global surplus. Brent dropped below $64 a barrel after a two-day gain.

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