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Market Update

Nifty : 24,585.05 +221.75 (+0.91%)

Sensex : 80,604.08 +746.29 (+0.93%)

* Equity benchmark Sensex rallied over 700 points, and Nifty reclaimed the 24,600 mark as market sentiment improved after the announcement that U.S. President Donald Trump and Russian President Vladimir Putin will meet in Alaska to discuss the Russia–Ukraine conflict, aiming to ease geopolitical tensions. The mood was further lifted by strong domestic mutual fund inflows, which surged to ?9,426 crore in July — the highest since December 2024 — along with value buying driven by attractive valuations and a favorable risk-reward outlook.

* Global cues were supportive, with U.S. markets gaining 1% to hit record highs in the previous session, Asian markets posting modest gains, and European markets opening flat but steady on optimism over potential interest rate cuts by US Fed. Reports also indicated that the U.S. and Russia are working toward a deal to end the Ukraine war.

* The Sensex closed 746 points higher at 80,604, while the Nifty rose 221 points to settle at 24,585. Buying was broad-based, with the Nifty Realty and PSU Bank indices jumping 2% each, and other sectors like pharma, auto, mid-cap, defence, and FMCG gaining up to 1%.

* The PSU Bank index climbed 2.2% after SBI delivered better-than-expected Q1 results. Sentiment toward the segment also improved after ICICI Bank raised the minimum balance requirement for new savings accounts opened on or after August 1 to Rs.50,000 — five times the earlier limit — prompting expectations that small account holders may shift to PSU banks, which typically require lower balances. SBI, Bank of Baroda, Union Bank, Indian Bank, and PNB advanced between 2–4%.

* The Nifty Defence index rose 1% on bargain hunting, supported by data showing defence production grew 18% year-on-year to Rs.1.27 lakh crore, with defence PSUs and other public sector enterprises accounting for 77% of the total output.

Technical Outlook:

* Nifty index opened positive and improved throughout the day and managed to touch 24600 zones. Index steadily climbed throughout the session and a base formation was seen. Buyers successfully defended 24350 zones and closed with gains of around 220 points.

* It formed a bullish candle on the daily frame and recouped all of the losses of the previous sessions. Now it has to hold above 24442 zones for an up move towards 24650 then 24800 zones while supports can be seen at 24350 then 24250 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.71% at 24614 levels. Positive setup seen in Paytm, Supreme Industries, PB Fintech, JSW Energy, MCX, Indian Bank, Eternal, VBL, Fortis, and Trent while weakness in Amber Enterprises, PG Electroplast, Titagarh, PI Industries, OIL India, Concor, Syngene International, Mankind Pharma, Jindal Stainless and Biocon.

* On option front, Maximum Call OI is at 24600 then 25000 strike while Maximum Put OI is at 24500 then 24400 strike. Call writing is seen at 24550 then 25050 strike while Put writing is seen at 24400 then 24500 strike. Option data suggests a broader trading range in between 24100 to 25100 zones while an immediate range between 24400 to 24800 levels.

Global Market Update

* European Market - European stocks erased earlier gains in muted trading as investors await the meeting Friday between US President Donald Trump and Russia’s Vladimir Putin, with energy stocks down as oil dipped.

* Asian Market - Asian markets mostly rose Monday as investors eyed a week dominated by speculation about US inflation data and a prolonged pause for Washington's tariffs on China. Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90- day deadline due to expire Tuesday. PGEL decline 15% after reduce FY26 growth guidance.

* US Data - Consumer Credit

* Commodity - Oil edged lower, extending its biggest weekly drop since end-June, as US President Donald Trump’s push to end the war in Ukraine eases concerns about supplies from top producer Russia. Brent traded near $66 a barrel.

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