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• The equity benchmarks, Sensex and Nifty, ended flat after reversing early losses, as investors continued to adopt a "buy on the dips" approach in recent sessions. Stock-specific movements were observed as the market closely watched the US's new tariff policy and the upcoming release of the Fed meeting minutes this week

• Nifty and Sensex, which started the trading day in the red, with losses of up to 0.70% each, recovered much of those losses by mid-session, driven by buying interest in select PSU, power, auto ancillary, and IT stocks. FMCG and auto stocks were the major decliners.

• Nifty fell by 14 points or 0.1% to end at 22,945, while Sensex dropped by 29 points or 0.1% to close at 75,967, compared to the previous session.

• The Nifty Auto Index slipped 1%, led by auto majors M&M and Tata Motors, following news of Tesla’s imminent entry into India. However, auto ancillary stock Sona BLW surged 3.5%, closing at Rs 519, as it supplies components to Tesla. Energy and metal stocks such as Tata Power, JSW Energy, JSW Steel, and NTPC rose by 1-3% due to the benefits of falling Asian coal prices, which have dropped to a four-year low.

• Globally, Asian and European markets showed mixed performance as investors evaluated the outlook for defense spending and the possibility of a ceasefire in Ukraine.

Technical Outlook

• Nifty index opened flattish but failed to hold its opening zones and dripped in the first couple of hours. It took a pause at 22800 zones and witnessed recovery thereafter for the entire session. It recouped its intraday losses but failed to cross 23k marks.

• It formed a small bodied candle on daily frame with longer lower shadow indicating buying intact at support levels and negated its lower highs – lower lows formation of the last two sessions. Now if it manages to cross and hold above 23000 zones then bounce could be seen towards 23150 then 23250 zones while supports are intact at 22800 then 22725 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.34% at 22948 levels. Positive setup seen in Zomato, Wipro, Berger Paints, TECHM, Bajaj Finance, MGL, Bajaj Finserv, HDFC Bank, CIPLA and JSW Steel while weakness in NBCC, HFCL, IRB, IDFC First Bank, Bank of Indian, CAMS, RBL Bank, Biocon, Trent, Astral, ABB and ABFRL.

• On option front, Maximum Call OI is at 23500 then 24000 strike while Maximum Put OI is at 22000 then 22700 strike. Call writing is seen at 23200 then 23000 strike while Put writing is seen at 22700 then 22900 strike. Option data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22700 to 23100 levels.

• BHEL - Ducon Tech initiated an arbitration against the firm for a claim of Rs 30 crore and other related interests.

• Vinati Organics establishes US subsidiary – Company announced today the incorporation of its wholly owned subsidiary, Vinati Organics USA INC, in Delaware, United States. The US subsidiary will focus on processing, distribution, and sale of chemical solutions, including raw material acquisition and processing into finished goods.

• Mittal’s Firm sells Airtel stake worth $976mn - A unit owned by founder Sunil Bharti Mittal sold shares worth $976 million in India’s No.2 wireless carrier seeks funds for newer opportunities. Indian Continental Investment Ltd., a founder entity of Bharti Airtel sold 0.84% stake or 51 million shares for Rs8485cr ($976 million), nearly a fourth of which were picked up by another group firm Bharti Telecom Ltd. Names of other investors were not disclosed in the trade that happened at Rs1660.46 per share, a small discount to Monday’s close of Rs1,675.6.

• Gabriel India - Company has executed a license agreement with Marelli Suspension Systems Italy S.p.A (Marelli Italy) for the grant of a license to manufacture, assemble, sell, distribute, and market certain products in India using technical information provided by Marelli Italy. Additionally, it has signed a technical assistance agreement with Marelli Italy for receiving technical assistance and support.

• Asian Coal Futures at Lowest Since 2021 on China Oversupply - Coal prices have fallen to the lowest level in nearly four years as inventories pile up across Asia after a mild winter and as demand growth slows in top consumer China. Australia’s Newcastle coal futures, the regional benchmark for thermal fuel, slipped on Monday to $102 a ton for the February contract, down 20% since the start of the year and the lowest for a front-month contract since May 2021. They hit a record $463.75 a ton in September 2022, in the midst of the energy crisis following Russia’s invasion of Ukraine.

• TVS Supply Chain Solutions - TVS Motor Company bought 20 lakh shares TVS Supply at an average price of Rs 128.86 per share from investor Allanzers Fin Net.

Global Market Update

• European Market - European stocks paused as investors assessed the outlook for defense spending and the likelihood of ceasefire in Ukraine. UK, Germany and France Index gained 0.2% each.

• Asian Market - Asian stocks advanced as expectations a meeting between President Xi Jinping and business leaders will give a boost to private companies spurred stocks in Hong Kong and China. Reserve Bank of Australia cut interest rate by 25bps to 4.10% inline with Bloomberg expectation. Australia Index declined by 0.7%. Japanese stocks closed higher for a second day, as banks gained on expectations of more interest-rate hikes.

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