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Market Update

Nifty  : 24,335.95 +7.45 (+0.03%)

Sensex : 80,288.38 +70.01 (+0.09%)

* Benchmark indices Sensex and Nifty ended slightly higher, supported by strong performances in the defense and IT sectors. The Nifty posted gains for a second straight session, driven by optimism around a potential trade agreement with the U.S. and steady foreign investment inflows. However, market advances were limited due to ongoing geopolitical tensions with Pakistan. The Sensex rose by 70 points, or 0.1%, to close at 80,288, while the Nifty 50 climbed 7 points to finish at 24,335.95, also up nearly 0.1%.

* Investor sentiment remained upbeat following comments from the U.S. Treasury Secretary suggesting India may be among the first to sign a trade pact with the U.S. Foreign institutional investors (FIIs) have injected approximately Rs.35,000 crore into Indian equities over the past nine sessions.

* Globally, U.S. markets closed mixed overnight, while European and Asian markets moved higher ahead of key corporate earnings announcements from major U.S. firms including Metal, Microsoft, Amazon, and Apple.

* Back home, defense stocks led the rally with the Nifty Defense Index surging over 5% today and gaining 9% over the last two sessions. This came after India and France signed a significant Rs.63,000 crore deal for 26 Rafale Marine aircraft for the Indian Navy. Shares of Paras Defense rose 17% to close at Rs.1,337, while HAL, Mazagon Dock, Cochin Shipyard, GRSE, and Data Patterns advanced between 5% and 14%.

* Meanwhile, the Nifty Metal and Pharma indices each fell 1% due to profit-taking. The Nifty IT Index rose by 1%, supported by gains in TCS, Infosys, LTTS, Tech Mahindra, and Persistent Systems.

Technical Outlook:

* Nifty Index opened positive and continued buying interest in the first tick but failed to hold above 24450 levels and consolidated within a narrow band for the rest of the day. It moved inside the range of the first hour and managed to close above 24300 marks.

* It formed a small bodied bearish candle on daily frame but has started to form higher lows from the last two sessions. Now it has to hold above 24200 zones for an up move towards 24500 then 24650 zones while supports have shifted higher towards 24200 then 24050 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.10% at 24429 levels. Positive setup seen in Tube Invest, Sonacoms, Prestige Estate, HAL, Reliance, TECHM, BEL, LTI Mindtree, Persistent system, KPIT Tech, Tata Chemicals, Federal Bank and SBI Card while weakness in Tata Technologies, Aurobindo Pharma, Oberoi Realty, JSW Energy, Coal India, ABFRL, ONGC, NTPC, Adani Total Gas, Hindustan Zinc and Hero MotoCorp.

* On option front, Maximum Call OI is at 24500 then 25000 strike while Maximum Put OI is at 24300 then 24000 strike. Call writing is seen at 24400 then 24500 strike while Put writing is seen at 24300 then 24400 strike. Option data suggests a broader trading range in between 23800 to 24800 zones while an immediate range between 24100 to 24500 levels.

Global Market Update

* European Market - Stocks posted modest gains as traders parsed a deluge of European earnings while they awaited progress in trade negotiations and a series of updates on the US economy s. UK, Germany and France Index rose up to 0.5% each.

* Asian Market - Asian shares were mostly higher on Tuesday after U.S. stocks drifted to a mixed, quiet finish ahead of a busy week of corporate earnings and economic data that could bring more bouts of volatility. South Korea, Taiwan and Australia Index gained 0.5% each. Japan market is shut today.

* US Data - Retail Inventory and Jolt Job opening

* Commodity - Oil extended a drop as the global trade war hurt the outlook for demand, with data pointing to signs of strain in the US economy and China stepping up its pushback against the Trump administration’s tariffs. Brent fell toward $65 a barrel.

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