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Market Update

Nifty : 25,549.00 +304.25 (+1.21%)

Sensex : 83,755.87 +1000.36 (+1.21%)

* Equity benchmark Sensex surged over 1,000 points, and Nifty ended at an eight-month high above the 25,500 mark, while Bank Nifty closed at a record high, driven by improved market sentiment. This positive momentum was supported by easing geopolitical tensions in the Middle East, a sharp 20% drop in crude oil prices to $67 per barrel from recent highs, and the U.S. Dollar Index falling to a two-year low of 97.

* On the domestic front, strong inflows from domestic institutional investors and optimism around a rebound in corporate earnings for Q1 of the current fiscal year also contributed to the rally. Over the past three trading sessions, Nifty has jumped nearly 600 points, while it gained 750 points during the June F&O expiry period.

* Bank Nifty advanced by 585 points, or 1%, to close at a record high of 57,206. Today’s gains were further supported by short covering during the latter part of the session, coinciding with the June F&O expiry. Nifty rose 304 points, or 1.2%, to end at 25,549, while Sensex gained 1,000 points, or 1.2%, closing at 83,755.

* Blue-chip stocks such as Reliance Industries, HDFC Bank, Hindalco, Bharti Airtel, Bajaj Finance, and NTPC were key contributors to the Nifty's gain of over 1%. Sector-wise, indices for banking, metals, oil & gas, and FMCG posted gains between 1% and 2%. However, the Nifty Realty Index declined by 1% due to profit booking.

* The Nifty Metal Index jumped 2%, led by gains of 2-4% in stocks like National Aluminium, Hindalco, Vedanta, Tata Steel, and SAIL. Metal stocks were buoyed by expectations of stronger global demand amid easing geopolitical risks and the declining U.S. dollar index.

* Globally, Asian markets were mixed, while European markets posted modest gains as investors weighed the Iran-Israel ceasefire cautiously and shifted focus toward macroeconomic indicators and the global oil outlook.

Technical Outlook:

* Nifty index opened positive and maintained a bullish tone throughout the session, extending gains and reaching intraday high above 25550 levels. It escalated upward throughout the day and every minor dips were quickly absorbed, reflecting strong underlying momentum. It closed near its higer band with gains of around 300 points.

* It formed a bullish candle on daily frame with a breakout from the consolidation and has been forming higher lows from the last five sessions. Now it has to hold above 25500, for an up move towards 25650 and 25850 zones while supports have shifted higher to 25350 then 24250 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 1.20% at 25554 levels. Positive setup seen in Hindustan Copper , Dalmia bharat, Jio Financial, LTF,Eternal, Mphasis, Max health, AU Bank, Grasim and AB Capital while weakness in Mazagon, Colpal, Syngene, Piramal pharma, Chambal fertilizer, INOX wind, ABFRL, VBL, Godrej CP, Mankind pharma and Dixon.

* On option front, Maximum Call OI is at 25500 then 26000 strike while Maximum Put OI is at 25500 then 25200 strike. Call writing is seen at 25500 then 26000 strike while Put writing is seen at 25500 then 25200 strike. Option data suggests a broader trading range in between 24000 to 26000 zones while an immediate range between 25300 to 25700 levels.

Global Market Update

* European Market - Crude oil prices stabilized on Thursday as investors considered the Iran-Israel ceasefire with caution while refocusing on macroeconomics and oil balances. Germany Index gained 0.8% while France Index gain 0.3%.

* Asian Market - Asian markets witnessed mixed bag. Japan’s stocks advanced for a third straight day, powered by high-tech shares which rose on signs of strong AI demand in the US. Defense names were also solid after NATO agreed to raise security spending targets. Japan Index rose 1.6% while Hong Kong and China Index declined up to 0.5%.

* US Data - Q1 GDP, Personal Consumption, Initial Jobless and Pending Home sale.

* Commodity - Crude oil prices rose 1% to above $68/bbl on Wednesday amid uncertainty about the stability of a ceasefire between Iran and Israel.

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