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Market Update

Nifty : 25,239.10 +169.90 (+0.68%)

Sensex : 82,380.69 +594.95 (+0.73%)

* Equity benchmark Sensex rallied nearly 600 points while Nifty closed above the 25,200 mark, hitting a two-month high on the back of optimism around a possible India–US trade deal, expectations of a 25-bps US Fed rate cut, and firm global cues. Sentiment was further buoyed by GST reforms and strong domestic macro data. The Sensex advanced 595 points, or 0.70%, to 82,380, while the Nifty climbed 186 points, or 0.74%, to settle at 25,255. Major gainers in the Nifty basket included L&T, Kotak Bank, M&M, Maruti, TCS, and NTPC, with buying interest shifting towards large-cap counters.

* Sectorally, autos led the rally with the Nifty Auto Index rising 1.4% on the back of GST reforms and hopes of improved festive-season demand, driven by Maruti, Eicher Motors, Hyundai Motor, and M&M. Realty, IT, metals, and oil & gas indices also posted gains of up to 1%. IT stocks saw renewed buying interest on optimism around the US–India trade talks, with Persistent Systems, Coforge, HCL Tech, and Oracle Finance advancing 1–2%. Realty names like DLF, Prestige, Lodha, and Godrej Properties added 1–2%.

* Globally, Wall Street rose up to 1% overnight to close at record highs, while Asian and European markets ended mixed amid fresh US–China trade tensions. US Treasury yields slipped as investors await the Fed’s policy decision tomorrow.

Technical Outlook:

* Nifty index opened positive and sky rocketed with a breakout in the initial hour. It continued momentum and witnessed fresh buying in the last hour and inched towards 25260 levels. Bulls were seen in full action and respected base of 25050 to close near its higher band with gains of around 170 points.

* It formed a bullish candle on daily frame and has been making higher lows from the last seven sessions. Now it has to hold above 25150 zones for an up move towards 25350 then 25500 zones while supports can be seen at 25150 then 25050 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.74% at 25351 levels. Positive setup seen in GMR Airport, Cyient, NHPC, Amber Enterprise, Supreme Industries, Kotak Bank, LT, Bharat Forge, RVNL and Prestige Estate while weakness in Syngene International, VBL, BSE, MCX, Indian Hotel, Angel One, Godrej Consumer products, Max Healthcare, Tata Consumer product and Asian Paints.

* On option front, Maximum Call OI is at 25200 then 25500 strike while Maximum Put OI is at 25200 then 25000 strike. Call writing is seen at 25200 then 25300 strike while Put writing is seen at 25200 then 25100 strike. Option data suggests a broader trading range in between 24800 to 25600 zones while an immediate range between 25000 to 25500 levels.

Global Market Update

* European Market - European stocks paused ahead of the Federal Reserve’s two-day policy meeting. Italian banks were in focus on news that the government was drafting plans to raise another €1.5 billion ($1.8 billion) from lenders.

* Asian Market - Asian stocks advanced again Tuesday to extend another record day on Wall Street as traders locked in bets on a US interest rate cut this week, while they are also keenly eyeing flagged talks between Donald Trump and Xi Jinping.

* US Data - Retail sales and IIP.

* Commodity - Crude oil prices is trading flat at $67/bbl ahead of key of US Fed policy outcome to be announce tomorrow.

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