MOSt Market Roundup : Nifty index opened positive and remained in a narrow range of around 100 points throughout the day - Motilal Oswal Wealth Management
Market Update
Nifty : 22,545.05 2.50 (-0.01%)
Sensex : 74,612.43 10.31 +0.01%
* Equity benchmarks Nifty and Sensex closed almost unchanged, while the broader market saw a sharp decline due to concerns over persistent FII selling, US retaliatory tariffs, and weakness in global markets. Investor sentiment was dampened after US President Donald Trump announced a 25% tariff on EU imports. Additionally, tech stocks declined following Nvidia’s earnings, which failed to impress investors.
* Caution prevailed among traders as the USD/INR hit a record high above 87 ahead of key US GDP and personal consumption data, as well as domestic GDP figures set to be released tomorrow. The Nifty 500’s advance-to-decline ratio stood at 1:4, signaling heavy selling in mid-cap and small-cap stocks.
* FIIs remained net sellers, offloading over Rs.45,000 crore this month and more than Rs.3 lakh crore over the last five months. Nifty has fallen over 12%, while Nifty Next 50 has declined by more than 25%. Nifty ended marginally lower by 2 points (0.01%) at 22,545, whereas Sensex edged up 10 points (0.01%) to close at 74,612.
* Cable and wire stocks were among the biggest losers after Ultratech Cement announced its entry into the segment. Meanwhile, select private banks, NBFCs, and microfinance stocks posted strong gains following the RBI’s decision to lower risk weights on MFI loans and loans to NBFCs. Other major losers included Realty, Auto, and IT sectors, which declined between 1-2%.
* Share of Cable and Wire stocks KEI Industries nosedived 21% to close at Rs2999. Both Polycab and RR Kable declined 18% each. Shares of CreditAccess Grameen rallied 12 per cent to close at Rs971. M&M Finance, L&T Finance, Shriram Finance, Chola Finance, Poonawala, AU Small Finance gained between 3-8%.
Technical Outlook:
* Nifty index opened positive and remained in a narrow range of around 100 points throughout the day. It moved in an extremely lacklustre manner with slight recovery in the second half which was given up in the last hour.
* It formed a small bodied bearish candle on daily frame and has been making lower lows from the last five sessions. Index has got stuck within a range of 150 points from the last three sessions. Now till it holds below 22650 zones, weakness could be seen towards 22400 then 22250 zones whereas hurdles are placed at 22650 then 22800 zones.
Derivative Outlook:
* Nifty future closed negative with losses of 0.17% at 22543 levels. Positive setup seen in AU Bank, LTF, Shriram Finance, M&M Finance, SRF, Baja FinServ, Manappuram Finance, Bajaj Finance, Chambal Fertilizer, Voltas and Berger Paints while weakness in KEI Industries, Polycab, GNFC, VBL, IEX, Havells India, PVRINOX, SUNTV, Ultratech Cement, Bata India, NBCC and ABB.
* On option front, Maximum Call OI is at 23000 then 22600 strike while Maximum Put OI is at 22500 then 22000 strike. Call writing is seen at 22600 then 23000 strike while Put writing is seen at 22500 then 22600 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22300 to 22800 levels.
* Shakti Pumps – Company has invested an additional Rs6 in its wholly-owned subsidiary Shakti EV Mobility. With this, the company's consolidated investment in Shakti EV Mobility has increased to Rs45cr. Shakti EV Mobility is engaged in the business of manufacturing various types of electric vehicle motors and charger controllers.
* Godrej Properties – Company has sold inventory worth over Rs1000cr in its residential project Godrej Evergreen Square in Pune. Company sold over 1,398 homes in the project with a total area of 1.23 million square feet since its launch in November 2024.
* Titagarh Rail eyes shipbuilding and maritime systems as next growth driver – Company’s Vice Chairman & MD of Titagarh Rail Systems sees shipbuilding and maritime systems as a key growth driver for the company. With experience in delivering vessels for the Indian Navy, Coast Guard, ocean research, as well as exports, Titagarh Rail now plans to scale up its presence in this sector by setting up new shipyards on both the eastern and western coasts of India.
* Tata Chemicals –Global rating agency Fitch on Tata Chemical long-term outlook stable and maintain rating affirmed by Fitch at BB+.
* Paytm Partners Perplexity for AI-Based Mobile Payments Services – Company has partnered with Perplexity for AI-powered services integrated in its payments app. One 97 Communications Ltd., which operates as Paytm, said the partnership will help customers get real-time financial assistance within the app
* Glenmark Pharma – Company launches Epinephrine Injection. Epinephrine injection is used for emergency treatment of severe allergic reactions (including anaphylaxis) to insect bites or stings, medicines, foods, or other substances.
* HCL Technologies – Company has inaugurated a new global delivery center in Hyderabad, India
Global Market Update
* European Market - European equity index decline as investors parse the latest tariff announcements from US President Donald Trump and after earnings from Nvidia Corp. failed to impress. UK, Germany and France Index declined 0.5% each.
* Asian Market - Asian stocks fell as equities in Hong Kong pulled back after a strong rally spurred by a slew of positive developments. Shares dropped in Taiwan and South Korea, while those in Japan rose. Investor sentiment remained cautious amid mixed messages from Donald Trump and uncertainty over US tariffs on Chinese imports.
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