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Market Update

Nifty : 25,181.80 +135.65 (+0.54%)

Sensex : 82,172.10 +398.44 (+0.49%)

* Equity benchmark Nifty closed above the 25,200 mark, while the Sensex rallied nearly 400 points, supported by strong buying in metal, defence, IT, and pharma stocks ahead of Tata Consultancy Services’ quarterly results. Market sentiment was further boosted by expectations of renewed foreign fund inflows, record highs in global markets, and positive quarterly business updates from corporates.

* The Sensex climbed 398 points, or 0.50%, to end at 82,172, while the Nifty advanced 136 points, or 0.55%, to settle at 25,181. In global markets, U.S. indices rose 1% overnight to close at record highs, while Asian and European markets also gained after U.S. Federal Reserve officials indicated that two additional rate cuts may be appropriate this year, improving investor confidence.

* Metal stocks led the rally, with the Nifty Metal index surging 2% amid rising base metal prices and optimism over potential Fed rate cuts coupled with signs of a China reopening. Hindustan Copper soared 6% to ?364 as copper prices hit a 10-month high on the LME. Other major gainers included Vedanta, Hindustan Zinc, Tata Steel, SAIL, NMDC, GMDC, and NALCO, which gained between 2% and 5%.

* Pharma stocks also saw renewed buying interest after the Trump administration clarified that it does not plan to impose tariffs on generic drugs imported from foreign countries. The Nifty Pharma index advanced 1%, led by Aurobindo Pharma, Lupin, Piramal Pharma, and Sun Pharma.

* Defence shares witnessed fresh buying on the back of strong order inflows, with the Nifty Defence index rising 1%. Bharat Dynamics, BEL, Aster DM, Mishra Dhatu Nigam, and Mazagon Dock gained between 2% and 5%.

Technical Outlook:

* Nifty index opened positive and moved upwards for most part of the day. Global cues and domestic macro uncertainties made the index choppy and it witnessed some consolidation during mid-day. It held on to the base of 25k marks and inched towards 25200 zones towards the end.

* It formed a bullish candle with longer lower shadow indicating buying is intact at lower levels. Now it has to hold above 25100 zones for an up move towards 25300 then 25450 zones while supports can be seen at 25000 then 24900 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.64% at 25280 levels. Positive setup seen in MCX, Aurobindo Pharma, Hindustan Zinc, Inox Wind, BSE, GMR Airport, JSW Steel, SAIIL, Tata Steel and OFSS while weakness in Naukri, PB Fintech, Havells, Axis Bank, Colpal, RVL, Jubilant Foodworks, Petronet LNG, Godrej Properties and Tata Motors.

* On option front, Maximum Call OI is at 25200 then 25500 strike while Maximum Put OI is at 25000 then 25100 strike. Call writing is seen at 25400 then 25350 strike while Put writing is seen at 25100 then 25200 strike. Option data suggests a broader trading range in between 24700 to 25700 zones while an immediate range between 24900 to 25400 levels.

Global Market Update

* Asian Market - Asian stocks rose, as the AI-fueled tech rally resumed following a brief pause and mainland China shares gained as the market reopened after Golden Week. Both Japan and China Index gained 1.8% and 1.5% respectively.

* 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 - Initial Jobless Claims.

* Commodity - Oil steadied at $66/bbl as traders focused on cooling tensions in the Middle East and higher US inventories.

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