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• Snapping a four-day winning streak, benchmark indices Sensex and Nifty closed lower by around half a percent, as investors booked profits amid a cautious stance ahead of the upcoming US-India trade negotiation deal. Market sentiment also remained subdued ahead of the release of May’s IIP data after market hours today and June’s monthly auto sales figures scheduled for tomorrow, keeping the indices largely range-bound.

• Despite weakness in the headline indices, the broader market remained resilient, with strong momentum in mid- and small-cap stocks, supported by positive developments in US-China trade negotiations. The Nifty ended the day down 124 points, or 0.5%, at 25,517, while the Sensex declined 352 points, or 0.50%, to settle at 83,606. The losses were led by heavyweights such as ICICI Bank, Axis Bank, Maruti, Reliance Industries, and Ultratech Cement.

• The advance-decline ratio for Nifty 500 stocks stood at 3:2, indicating a shift in buying interest towards the broader market. Sector-wise, the Nifty Auto Index dropped 1% ahead of tomorrow’s sales data release, while Nifty Private Bank, Realty, and Metal indices also fell up to 1%. In contrast, the Nifty PSU Bank Index surged 2.5% following reports that the Finance Ministry has advised state-run banks to monetize their investments in subsidiaries through stock exchange listings.

• Globally, sentiment was more upbeat, with Asian and European markets along with US index futures trading higher, driven by growing optimism over potential trade agreements between the US and several countries ahead of President Donald Trump’s upcoming reciprocal tariff deadline.

Technical Outlook :

• Nifty index opened flattish but failed to hold its opening high and dripped lower throughout the day. Bears dominated the early trade with little strength of bulls but they were stepping in at lower levels. Some consolidation was seen during mid-day with slight recovery towards the end and it finally closed above 25500 with losses of around 120 points.

• It formed a bearish candle similar to Bearish Engulfing pattern on daily frame and gave up its gains of the previous session. Now if it manages to hold above 25500, up move could be seen towards 25650 and 25750 zones while supports can be seen at 25400 then 25250 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.53% at 25615 levels. Positive setup seen in Kaynes, RBL Bank, PNB, LTF, Laurus lab, Bandhan Bank, AB Capital, Glenmark, CDSL, Trent, Divis Lab, Mphasis and Hindustan Copper while weakness in Tata Consumers, Lodha, Maruti, United Spirit, VBL, Syngene, Sonacoms, Mankind pharma, Patanjali and Granules.

• On option front, Maximum Call OI is at 25600 then 26000 strike while Maximum Put OI is at 25500 then 25000 strike. Call writing is seen at 25600 then 25800 strike while Put writing is seen at 25200 then 24900 strike. Option data suggests a broader trading range in between 25000 to 26000 zones while an immediate range between 25300 to 25700 levels

• Anant Raj to Invest $2bn on India Data Center Boom - Company plans to spend Rs18000cr rupees ($2.1 billion) on data centers as it joins a growing list of Indian companies looking to ride the boom in demand for artificial intelligence and business process-led services in the country.

• Castrol India Launches Three New Autocare Products - Company launched three new products under its autocare product portfolio- a throttle body cleaner, a fuel injector and carburetor cleaner, and a brake cleaner.

• Sanghvi Movers - Company has announced that Sham Dattatraya Kajale has resigned from his position as Chief Financial Officer.

• Alembic Pharma - Company received USFDA approval for its doxorubicin hydrochloride liposome injection. The injection has an estimated market size of $29 million for twelve months ending March 2025.

• Fitch Affirms India's Larsen & Toubro at 'BBB+'; Outlook Stable. The ratings reflect L&T's strong market position as a large global engineering and construction (E&C) company with above-average profitability and solid revenue visibility.

• Godrej Properties buys 43-acre land in Panipat, aims Rs 1,250 cr revenue - Company has acquired a 43-acre land parcel in Panipat, Haryana and is expecting a revenue of more than Rs 1,250 crore through the sale of residential plots.

Global Market Update

• European Market - European stocks gave up small gains, with automakers and miners leading declines. The benchmark was still set for its best first-half advance in two years. Both Germany and France Index.

• Asian Market - Asian equities rose slightly, amid growing optimism for potential trade deals between the US and various nations ahead of President Donald Trump’s reciprocal tariff deadline next week. Japan Index rose 0.8%. Both South Korea and Hong Kong gained 0.3% each.

• US Data - Dallas Fed Manufacturing Activity.

• Commodity - Crude oil prices is trading flat at $68/bbl ahead of OPEC+ meeting this week

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