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Market Update

Nifty : 23,851.65 +414.45 (+1.77%)

Sensex :78,553.20 +1508.91 (+1.96%)

* Equity benchmark indices extended their rally for the fourth consecutive session on Thursday, with the Sensex soaring by over 1,500 points and the Nifty closing above the 23,850 mark, reaching a 4-month high. The surge was largely driven by strong buying in the financial sector and blue-chip stocks such as Reliance, HDFC Bank, Bharti Airtel, and Axis Bank.

* A sharp market recovery was seen due to short covering, coupled with robust foreign institutional investor (FII) activity, which brought in net inflows of Rs.10,000 crore over the last two sessions. Positive factors included inflation nearing a six-year low at 3.34%, growing expectations of an RBI rate cut, the India Meteorological Department’s forecast of an above-normal monsoon, and a weakening US Dollar Index, which fell to a six-month low below 100.

* Additionally, US index futures rose 1% on optimism about potential trade talks between China and Japan. The Sensex ended 1,509 points, or 2%, higher at 78,553, while the Nifty gained 414 points, or 1.80%, closing at 23,851. Banking stocks were the biggest gainers, led by major private banks like HDFC Bank, Axis Bank, and ICICI Bank. The Bank Nifty advanced 2% to reach a near-record high of 54,290.

* Expectations of an RBI rate cut were fueled by March inflation falling to a nearly six-year low of 3.34%, well below the RBI's projection. Both HDFC Bank and ICICI Bank gained 2% and 4%, respectively, closing at record highs of Rs.1,906 and Rs.1,406. Telecom giant Bharti Airtel rose 3%, reaching an all-time high of Rs.1,889, buoyed by expectations of strong quarterly results. Among global markets, Tokyo led Asian stocks higher on Thursday, as optimism about Japan-US trade talks helped offset concerns raised by Federal Reserve Chair Jerome Powell's warning that Donald Trump's tariffs might force officials to choose between combating inflation or addressing unemployment.

Technical Outlook:

* Nifty Index opened positive and escalated throughout the day and skyrocketed above 23850 levels. It moved by 575 points during the day and closed at its higher band signifying the strength of the bulls. Despite being a truncated one, it moved by 665 points in the week and has been making higher lows from the last six trading sessions.

* It has formed a big bullish candle on daily as well as weekly frame. Now it has to hold above 23750 zones for an up move towards 24000 then 24250 levels while supports have shifted higher to 23650 and then 23500 level

Derivative Outlook:

* Nifty future closed positive with gains of 1.77% at 23848 levels. Positive setup seen in Delhivery, Eternal, ABB India, Bharti Airtel, ICICI Bank, Auro Pharma, CG Power, Sun pharma, Bajaj FinServ, Dmart, LTF, Kotak Bank and Reliance while weakness in Wipro, LTI Mindtree, Paytm, Tata Communication, Divis Lab, SAIL, Aarti Industries, Glenmark, Ireda, SJVN and Inox Wind.

* On option front, Maximum Call OI is at 24000 then 23900 strike while Maximum Put OI is at 23500 then 23300 strike. Call writing is seen at 24200 then 24100 strike while Put writing is seen at 23500 then 23800 strike. Option data suggests a broader trading range in between 23300 to 24400 zones while an immediate range between 23700 to 24100 levels.

Global Market Update

* European Market - European equities recover partially from the low ahead of the European Central Bank’s interest-rate decision on a busy day for corporate earnings. UK, Germany and France Index decline 0.3% each.

* Asian Market - Tokyo led Asian stocks higher on Thursday as optimism over Japan-US trade talks offset Federal Reserve boss Jerome Powell's warning that Donald Trump's tariffs could force officials to choose between fighting inflation or unemployment. Japan, South Korea, Hong Kong and Taiwan Index gained up to 1.5%.

* US Data - Housing Starts, Building Permit and Initial Jobless Claims.

* Commodity - Oil rose for a second day after the Trump administration again vowed to reduce

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