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Market Update

Nifty : 26,053.90 +117.70 (+0.45%)

Sensex : 84,997.13 +368.97 (+0.44%)

* Equity benchmark Nifty closed above the key 26,000 mark, while the Sensex advanced nearly 400 points as market sentiment strengthened on hopes of a potential US-India trade agreement. Optimism grew after US President Donald Trump stated that discussions were underway for a possible trade deal with India.

* Further supporting the rally were record-high global markets, strong domestic Q2 earnings, sustained FII inflows, and expectations that the US Federal Reserve may announce a rate cut in today’s FOMC policy meeting. Investors are closely watching the Fed’s decision, with markets anticipating a 25-basis-point reduction in interest rates.

* Broad-based buying was seen across sectors, with Nifty Metal, Oil & Gas, IT, Pharma, and FMCG indices gaining up to 2%. The Nifty rose 117 points, or 0.5%, to close at 26,053, while the Sensex climbed 369 points, or 0.4%, to end at 84,997.

* In global markets, US indices gained about 1% overnight, while Asian and European markets traded mixed ahead of the Fed’s policy announcement and renewed optimism over a possible US-China trade deal.

* The Nifty Metal index advanced over 1% amid expectations that China may introduce new stimulus measures and that a US-China deal could boost global demand. The Nifty Energy index rallied 2% following strong quarterly results from IOC and Chennai Petro, along with news of QatarEnergy signing a multi-year LNG supply agreement with GSPL.

* Among individual stocks, Blue Dart surged 19% and Varun Beverages gained 9% after reporting robust quarterly earnings. Adani Group stocks also witnessed fresh buying interest during the session.

Technical Outlook:

* Nifty index opened positive and stretched strength towards 26100 zones which was followed by minor rub off from the highs towards the end of the session. The overall narrative for Nifty remains resilient with any minor dips being bought into and it closed with gains of around 120 points.

* It formed a bullish candle on the daily frame and has been making higher highs from the last three sessions. Now it has to hold above 25950 zones for an up move towards 26277 then 26350 zones while supports can be seen at 25900 then 25800 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.66% at 26261 levels. Positive setup seen in VBL, SAIL, IOC, GAIL, Hindpetro, BHEL, INOX Wind, Vedanta, Jubiliant Foodworks and Tata Steel while weakness in CAMS, M&M, HDFC AMC, Godrej CP, TVS Motor, Coal India, HAL, Bajaj Finance and Mazagon Dock.

* On option front, Maximum Call OI is at 26500 then 26200 strike while Maximum Put OI is at 26000 then 25900 strike. Call writing is seen at 26050 then 26150 strike while Put writing is seen at 26000 then 25900 strike. Option data suggests a broader trading range in between 25600 to 26400 zones while an immediate range between 25800 to 26300 levels.

Global Market Update

* Asian Market - Asian stocks advance, boosted by the technology sector on AI-driven earnings strength, as investors awaited a meeting between Donald Trump and Xi Jinping and US Fed rate decision.

* European Market - European stocks were muted amid a flurry of earnings as investors looked ahead to the Federal Reserve’s interest-rate decision later today. Deutsche Bank AG and UBS Group AG rose after delivering strong earnings.

* US Data - FOMC Rate decision.

* Commodity - Oil prices are on track for a monthly loss despite optimism surrounding U.S.-China trade talks and reports of a U.S. crude stockpiles draw last week. Brent crude falls 0.5% to $63.53 a barrel.

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