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Market Update

Nifty : 24,625.05 +198.20 (+0.81%)

Sensex : 80,364.49 +554.84 (+0.70%

* Equity benchmark Nifty reclaimed the 24,500 mark while Sensex advanced nearly 600 points, supported by broad-based buying after upbeat domestic macro data lifted sentiment. India’s Q1 GDP growth came in at a 5-quarter high of 7.8%, while August Manufacturing PMI surged to a 17-year peak of 59.3, both fueling optimism. Strong auto sales data for August and expectations of GST reforms further buoyed the market, alongside positive geopolitical developments involving India-China and Russia.

* The Sensex closed 554 points higher (0.8%) at 80,364, and the Nifty gained 198 points (0.8%) to end at 24,625. Auto stocks led the rally, with the Nifty Auto index rising 3% after robust monthly sales figures. Eicher Motors, Bajaj Auto, Hero MotoCorp, and TVS Motor gained 2–4%. Market breadth was strong, with the Nifty 500 advance-decline ratio at 9:1, reflecting solid mid-cap and small-cap buying.

* Electronics manufacturers with exposure to China outperformed as bilateral relations showed signs of improvement. Kaynes Technology, Dixon, and Amber Enterprises surged up to 8%. Defense stocks also attracted bargain hunting, with the Nifty Defense index climbing 2.3%, led by BDL, Ideaforge, GRSE, and Data Patterns, which rose 2–6%. Other sectors such as IT, metals, PSU banks, mid-caps, and small-caps also posted gains of 1–2%.

Technical Outlook:

* Nifty index opened flattish and price action consistently made multiple attempts to hold above 24500 levels. It went on to touch 24625 in the northward side and closed at its higher band with gains of around 200 points. It found stability and base near 24442 zones and made up for the losses of the previous session.

* It formed a bullish candle on daily frame and negated its lower highs formation of the last five sessions. Now it has hold above 24442 zones for an up move towards 24750 then 24850 zones while supports can be seen at 24442 and 24350 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.78% at 24759 levels. Positive setup seen in Kaynes Technology, Tube Investments, Amber enterprise, Dixon Tech, Manappuram Finance, Mphasis, Exide Industries, Voltas, Bajaj Auto and Eicher Motors while weakness in Sun Pharma, ITC, Divis Lab, Reliance, Aurobindo Pharma, HDFC Bank, Alkem Lab, and LT.

* On option front, Maximum Call OI is at 24600 then 24700 strike while Maximum Put OI is at 24500 then 24600 strike. Call writing is seen at 24650 then 24700 strike while Put writing is seen at 24500 then 24600 strike. Option data suggests a broader trading range in between 24100 to 25100 zones while an immediate range between 24400 to 24900 levels

Global Market Update

* European Market - European stocks staged a rebound from the technology-driven selloff in shares, setting a steady tone at the start of a month that is historically weak for markets. Both Germany and France Index gain 0.4% each.

* Asian Market - Asian equities fell after a tech selloff hit Wall Street Friday, with chip shares among the biggest losers. Samsung Electronics Co. and SK Hynix Inc. tumbled after the US revoked China chip-gear permits. A gauge of technology shares in Hong Kong jumped as much as 2.6% with Alibaba surging 17% and lifting peers in the broader AI space, including Baidu Inc. and Tencent Holdings Ltd.

* US Data - US market close today.

* Commodity - Oil prices continue to hold in a tight range, as the market weighs prospects of an impending supply surplus against fading hopes for a near-term ceasefire in Ukraine. Brent crude rises 0.4% to $67.75 a barrel.

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