IGI Logo

Market Update

Nifty : 25,112.40 +319.15 (+1.29%)

Sensex : 82,408.17 +1046.30 (+1.29%)

* Equity benchmark Sensex surged over 1,000 points, while the Nifty closed above the 25,100 mark, snapping a three-day losing streak, as market sentiment improved following a statement from the White House that President Donald Trump would decide within two weeks on possible military action against Iran—easing fears of immediate U.S. involvement. Global markets also rallied, with Asian and European indices rising around 1%, and Brent crude prices falling over 3% amid reduced geopolitical tension concerns.

* The market witnessed broad-based buying, as traders covered short positions on hopes of de-escalation in the Israel-Iran conflict. Sensex jumped 1,046 points, or 1.3%, to close at 82,408, while Nifty gained 319 points, or 1.3%, ending at 25,112. Rebalancing in FTSE and Sensex indices further supported gains in mid-cap and small-cap stocks. Previously underperforming sectors such as Nifty PSU Banks, Realty, IT, Metal, and Oil & Gas rose between 1–2%, while both Nifty Defence and Auto indices advanced by 2% and 1%, respectively.

* Among the major Nifty gainers like Bharati Airtel, Reliance, HDFC Bank, M&M, Trent and Jio Finance gained between 2-3%. Among the major small cap and mid cap gainers today – Waaree Enetrgy, BEML, Rattan India, NTPC Green, Hyundai and GO-Digit surged between 5-12%..

Technical Outlook:

* Nifty index opened flattish and despite a subdued start, it witnessed a rally of around 350 points. It crossed the 25k barrier to touch an intraday high of 25135 and closed near its day’s high zone with gains of around 320 points. Positive global cues and easing geopolitical concerns resulted in an upward trajectory and it recovered most of the losses of the previous week. The strong buying interest in the last hour indicates a decisive shift in the trading band and commencement of a fresh leg of rally.

* It formed a bullish Marubozu candle on the daily frame and a bullish candle on the weekly frame, on the verge of a potential Pole & Flag breakout. Now it has to continue to hold above 25000, for an up move towards 25250 and 25500 zones while supports have shifted higher to 24950 then 24800 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 1.18% at 25096 levels. Positive setup seen in Max Healthcare, JIOFIN, M&M, MCX, Bharti Airtel, Persistent, Manappuram Finance, Astral, Aditya Birla Capital and BEL while weakness in Tata Technologies, Bajaj Auto, Godrej CP, United Spirits, ACC, Bank of India, Apollo Tubes, Mankind Pharma, PNB and IOC.

* On option front, Maximum Call OI is at 25500 then 26000 strike while Maximum Put OI is at 24800 then 25000 strike. Call writing is seen at 25500 then 25600 strike while Put writing is seen at 24900 then 25000 strike. Option data suggests a broader trading range in between 24600 to 25600 zones while an immediate range between 24900 to 25300 levels.

Global Market Update

* European Market - European equities rose on Friday as investors had some respite from geopolitical worries after US President Donald Trump said he would decide within two weeks whether to strike Iran. Both Germany and France Index gained 1% each.

* Asian Market - Asian markets witnessed mixed bag. The Hang Seng China Enterprises Index closes 1.4% higher after US President Donald Trump said he would decide within the next two weeks whether to strike Iran, easing concern of more immediate involvement.. Japan Index declined by 0.2%.

* US Data - Fed Business Outlook.

* Commodity - Oil slumped after President Donald Trump signaled a decision on whether to strike Iran will be made within two weeks, easing fears about an imminent attack from the US. Brent tumbled as much as 3.5% to trade below $77 a barrel.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412