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Market Update

Nifty : 25,843.15 +133.30 (+0.52%)

Sensex : 84,363.37 +411.18 (+0.49%)

* Dalal Street witnessed a firecracker rally as Bank Nifty hit an all-time high and Nifty approached the 26,000 mark, driven by strong quarterly earnings, a global market uptrend, and sustained FII buying. Over the last three sessions, Nifty gained 340 points (2.3%) and Sensex surged nearly 2,000 points (2.3%), supported by broad-based buying across financials, large-cap blue chips, auto, metal, defense, and FMCG stocks.

* Today, the Nifty advanced 133 points (0.5%) to close at 25,843, while the Sensex rose 411 points (0.5%) to 84,643, led by Reliance Industries, Cipla, Bharti Airtel, TCS, and Hindalco. Major sectoral indices such as financials, IT, pharma, oil & gas, tyre, and PSU banks were among the top gainers.

* Market sentiment was buoyed by better-than-expected Q2 results from Reliance Industries, Axis Bank, and HDFC Bank, along with falling crude prices to a six-month low, renewed FII inflows, and optimism over easing US-China trade tensions.

* Small-cap banking stocks rallied sharply following strong earnings from City Union Bank, Federal Bank, Central Bank of India, DCB Bank, and South Indian Bank, which climbed between 3% and 12%, pushing the Nifty PSU Bank Index up 3%.

* Tyre stocks also gained traction, with Ceat Ltd surging 12% to ?4,203 after announcing impressive Q2 results. The Nifty Oil & Gas Index rose 1.5%, driven by Reliance Industries, which jumped 3.5% to ?1,466.

Technical Outlook:

* Nifty index opened gap up by more than 100 points and inched sharply higher towards 25926 which was followed by oscillations within a range throughout the day. It formed a bullish candle on daily frame and has been making higher highs from the last four sessions.

* It gave the highest ever daily close of the last 262 sessions and closed with gains of around 130 points. Now it has to hold above 25750 zones for an up move towards 26000 then 26250 zones while supports have shifted higher to 25650 then 25500 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.67% at 25930 levels. Positive setup seen in AU Bank, RBL Bank, Federal Bank, IDFC First Bank, Cipla, Indian Bank, Union Bank, Reliance, Polycab and Shriram Finance while weakness in Dixon Technologies, Shree Cement, JSW Energy, Hindustan Zinc, ICICI Bank, Dalmia Bharat, Kaynes Technology, COLPAL, CG Power and Max Financial.

* On option front, Maximum Call OI is at 26000 then 26500 strike while Maximum Put OI is at 25500 then 25000 strike. Call writing is seen at 26000 then 25900 strike while Put writing is seen at 25700 then 25900 strike. Option data suggests a broader trading range in between 25300 to 26300 zones while an immediate range between 25600 to 26100 levels.

Global Market Update

* Asian Market - Asian markets witnessed smart rally led by Japan and Hong Kong Index surge over 2% each easing concerns over US-China trade tensions. Japanese stocks rose over 3% ahead of a vote on Tuesday that will determine the country’s next prime minister and provide clarity for investors.

* European Market -European stocks rebounded on Monday after risk appetite improved as Washington and Beijing struck a friendlier tone on trade and regional-bank jitters faded. UK, Germany and France Index gain d up to 1%.

* Commodity - Oil decline 2% to below $61/bbl as investors focused on oversupply and the fallout from renewed US- China trade tensions.

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