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Market Update

Nifty : 25,285.35 +103.55 (+0.41%)

Sensex : 82,500.82 +328.72 (+0.40%)

* Equity benchmark Nifty closed near the 25,300 mark, while the Sensex advanced over 300 points, driven by renewed foreign portfolio investor (FPI) inflows over the past three sessions and stronger-than-expected quarterly results from TCS. Market sentiment was further supported by optimism surrounding the ongoing UK-India FTA talks, robust corporate business updates, and positive domestic macroeconomic indicators.

* The Nifty rose 103 points, or 0.4%, to close at 25,285, while the Sensex gained 328 points, or 0.4%, to settle at 82,500. Sectorally, PSU banks, realty, and pharma led the gains, rising up to 2%, while the Nifty Metal index declined 1% on account of profit booking.

* Pharma stocks rallied after the Trump administration clarified it would not impose tariffs on imported generic drugs. Additional sentiment boost came as the U.S. Senate approved a measure restricting Chinese access to U.S. biotech manufacturing and development. Divi’s Labs surged 5% to ?6,474, while Cipla, Piramal Pharma, and Dr. Reddy’s gained between 2% and 4%.

* PSU banking stocks saw a strong upmove after reports that the government will allow private-sector professionals to apply for senior leadership roles, including the Managing Director position, in public sector banks. PNB, Bank of Baroda, Bank of India, UCO Bank, and SBI rose between 2% and 4%.

* Realty stocks also advanced, with Godrej Properties, Phoenix Mills, Lodha, and Brigade Enterprises gaining up to 3%.

* In global markets, U.S. indices slipped nearly 1% overnight, while Asian and European markets traded mixed amid profit booking and cautious remarks from U.S. Federal Reserve officials regarding the pace of potential rate cuts

Technical Outlook:

* Nifty index opened flattish and witnessed a spurt in the first half of the session. It faced some consolidation for the rest of the session but managed to touch an intraday high of 25330 zones. It maintained a bullish undertone throughout the session and respected the base of 25150 zones.

* It formed a bullish candle won daily frame and closed with gains of around 100 points. It formed a strong bullish candle on the weekly frame and closed near its higher band. Now it has to hold above 252200 zones for an up move towards 25450 then 25600 zones while supports can be seen at 25150 then 25000 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.56% at 25415 levels. Positive setup seen in PG Electroplast, Divis Lab, Cipla, CDSL, BSE, INOX Wind, Syngene, Dixon, DLF and PNB while weakness in UNO Minda, Jindal steel, ICICI GI , Naukri, RVNL, Siemens, KPIT Tech, HDFC Life and Tata Motors.

* On option front, Maximum Call OI is at 25400 then 25500 strike while Maximum Put OI is at 25200 then 25300 strike. Call writing is seen at 25450 then 25300 strike while Put writing is seen at 25300 then 25250 strike. Option data suggests a broader trading range in between 24800 to 25800 zones while an immediate range between 25100 to 25500 levels.

Global Market Update

* Asian Market - Asian stocks slid, putting the regional benchmark on track for a weekly loss, with Japanese equities leading the declines amid concerns over high valuations in the tech sector. Japan, Hong Kong and China Index declined up to 2.5%.

* European Market - European stocks were steady on Thursday after closing at a record in the previous session, as investors focused on further developments in France’s political crisis. Mining as well as travel and leisure sectors outperformed, while autos and bank shares were among the biggest laggards.

* US Data - US of Mich 1 year and 5-Year Inflation.

* Commodity - Oil prices decline 1% to below $65/bbl on account of reduce geo-political tension in the gulf region after Israel approved the U.S.-brokered deal for a ceasefire and hostage release in Gaza.

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