IGI Logo

Market Update

Nifty  : 24,328.50 +289.15 (+1.20%)

Sensex : 80,218.37 +1005.84 (+1.27%)

* Equity benchmarks posted strong gains, with market sentiment lifted by renewed foreign institutional investor (FII) buying, strong quarterly results from Reliance Industries, and optimism over a potential US-China trade agreement. The Sensex surged 1,005 points, or 1.3%, to close above the 80,000 mark at 80,218, while the Nifty advanced 281 points, or 1.3%, to settle at 24,320. The rally was driven by robust gains in Reliance Industries and broad-based strength across sectors such as banking, oil & gas, defense, metals, midcaps, and small-caps, which rose between 1% and 3%.

* This bullish momentum came despite lingering concerns following the deadly terrorist attack in Pahalgam, Kashmir, which claimed 26 lives. Globally, markets recorded strong rallies as trade tensions between the US and China eased, with both sides agreeing to reduce tariffs. Positive quarterly earnings reports from major US companies also supported sentiment.

* On the domestic front, FIIs have been net buyers of over Rs.30,000 crore across the past eight trading sessions. Additionally, direct tax collections for FY25 rose by 15.6% year-onyear to Rs.27 lakh crore, providing further support to the market.

* Reliance Industries emerged as a major contributor to the rally, jumping 5% to Rs.1,366 — its biggest single-day gain since June — after posting better-than-expected fourthquarter earnings. Defense stocks also surged after India signed a Rs.63,000 crore deal with France to procure 26 Rafale Marine aircraft for the Indian Navy. Paras Defence rallied 10%, while Mazagon Dock, Cochin Shipyard, GRSE, BDL, and HAL gained between 4% and 7%.

Technical Outlook:

* Nifty Index opened positive and picked up strength right from the start of the session. It gradually moved northward throughout the day but failed to hold above 24350 zones and witnessed a slight rub off towards the end but was quickly absorbed by the bulls.

* It formed a bullish candle and an inside bar on daily frame and closed the day with gains of around 290 points. 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 positive with gains of 1.30% at 24453 levels. Positive setup seen in RBL Bank, Supreme Industries, HAL, Prestige Estate, Reliance, BPCL, ABFRL, Lupin, BSE, CESC, PNB, NCC and Grasim while weakness in Shriram Finance, LTF, Syngene International, JSW Energy, Ambuja Cement, ACC, Naukri, HUL, Apollo Tyres, Crompton and IRFC.

* On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 24000 then 24200 strike. Call writing is seen at 24500 then 25000 strike while Put writing is seen at 24000 then 24200 strike. Option data suggests a broader trading range in between 24000 to 25000 zones while an immediate range between 24200 to 24600 levels.

Global Market:

* European Market - European stocks gained as traders readied for a week packed with major earnings and economic data, with investors watching for signs of progress in trade negotiations. UK, Germany and France Index rose 0.5% each.

* Asian Market - Asian stocks advanced as focus shifted to a slew of major earnings from the region while trade tensions appear to have peaked, at least for now. Japanese benchmarks outperformed following a report on Toyota Motor Corp. chairman’s proposal to buy out Toyota Industries. Chinese shares were range-bound as officials reiterated their plan to strengthen support for employment and the economy.

* US Data - Dallas Fed Manf. Activities.

* Commodity - Crude oil prices started trading this week with a gain despite mixed signals from Washington regarding tariff negotiations with China. At the time of writing, Brent crude was trading at $67.03 per barrel.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412