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Market Update

Nifty : 25,195.80 +113.50 (+0.45%)

Sensex : 82,570.91 +317.45 (+0.39%)

* The equity benchmark Sensex rebounded after four consecutive sessions of decline, as easing inflation data lifted market sentiment. June retail inflation cooled to its lowest level in over six years, while wholesale inflation dropped to a near two-year low. This marks the fifth straight month that inflation has remained below the RBI’s 4% target, strengthening expectations of a potential interest rate cut.

* Global cues were also supportive, with Asian and European markets trading higher after U.S. President Donald Trump expressed willingness to resume tariff negotiations with key economies like the European Union and Mexico. Optimism over a possible RBI rate cut, positive developments in Russia-Ukraine peace talks, and hopes for a favorable U.S.- India trade agreement further supported the market.

* The Nifty rose 113 points or 0.4% to close at 25,195, while the Sensex gained 317 points or 0.4% to settle at 82,570. The Nifty Auto Index led sectoral gains, jumping 1.5%, followed by strength in Nifty Bank, FMCG, Realty, and Pharma indices, which rose up to 1%.

* Rate cut hopes boosted interest in realty and PSU bank stocks, with SBI, Bank of Baroda, PNB, and IOB climbing 1–2%. Realty counters such as Sobha and Anant Raj rallied more than 6% each. Auto and FMCG shares advanced on expectations that above-normal monsoon rains will boost rural demand, with Hero MotoCorp, TVS Motor, and Bajaj Auto gaining between 2–5%.

Technical Outlook:

* Nifty index opened flattish and after the initial swing towards 25250 zones in the first half of the session, it oscillated in a range for the rest of the session. The last hour demonstrated a remarkable recovery staging a strong comeback that underscored the bears and closed with gains of around 110 points.

* It formed a bullish candle on daily frame and negated its lower top lower bottom structure on the daily frame indicating a decisive shift in momentum. Now it has to continue to hold above 25150 zones for an up move towards 25350 then 25500 zones while support can be seen at 25100 then 25000 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.46% at 25283 levels. Positive setup seen in Hero Moto, KEI Industries, CAMS, HDFCAMC, Blue Star, Biocon, Bandhan Bank, Birla Soft, Amber Enterprise, TVS Motors and PAYTM while weakness in Inox Wind, HCL Tech, NMDC, HDFC Life, Torrent Power, ABB India, Axis Bank, RVNL, Asian Paints and ONGC.

* On option front, Maximum Call OI is at 25200 then 25500 strike while Maximum Put OI is at 25000 then 25200 strike. Call writing is seen at 25200 then 25250 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 25400 levels.

Global Market Update

* European Market - European stocks mostly edged higher Tuesday after the eurozone outlined potential retaliatory tariffs on about $77 billion worth of U.S. imports. The FTSE 100 was trading above 9000 points for the very first time. The index followed other European markets on hopes of a U.S.-Europe trade deal, Interactive Investor said.

* Asian Market - Asian stocks advanced as Nvidia’s plan to resume some chip sales to China stoked optimism over geopolitics. Chinese shares were mixed as the latest economic data raised concerns over pressure on domestic consumption. China Q2 GDP reported at 5.2% vs 5.4% previous quarter - Bloomberg expectation 5.1%.

* Commodity - Oil declined for a second session as traders doubted that US President Donald Trump’s latest plan to pressure Russia over the war in Ukraine would end up posing a meaningful obstacle to Moscow’s energy exports. Global benchmark Brent fell below $69 a barrel.

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