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Market Update

Nifty  : 24,039.35-207.35 (-0.86%) 

Sensex : 79,212.53-588.90 (-0.74%)

* Equity benchmarks ended lower amid heightened geopolitical concerns following the terror attack in Pahalgam, Jammu & Kashmir. The Nifty slipped nearly 1%, losing 207 points to close at 24,039, while the Sensex dropped 588 points or 0.7% to settle below the 80,000 mark at 79,212. Market sentiment turned cautious as diplomatic tensions between India and Pakistan escalated, alongside reports of ceasefire violations along the Line of Control (LoC). Additionally, profit booking was seen after the Sensex’s sharp 8,000-point rally since the April lows.

* Banking stocks led the decline, with Bank Nifty falling 1%. Axis Bank was among the major laggards, plunging over 4% after reporting a marginal dip in its March quarter earnings. Broad-based selling was witnessed across sectors like auto, metals, defense, pharma, mid-caps, and small-caps, which dropped between 1% and 2.5%. However, the Nifty IT Index stood out, gaining 0.70% supported by strength in global IT stocks, especially after Alphabet's strong quarterly results lifted the Nasdaq Composite.

* Globally, sentiment remained positive. Overnight, U.S. markets surged up to 2.5%, while Asian and European markets gained up to 2% on hopes of progress in trade negotiations between the U.S. and its key economic partners

Technical Outlook:

* Nifty Index opened positive but after touching 24365, it failed to hold at higher levels and slipped lower by more than 500 points from its intra day’s high due to geopolitical tensions. It took a breather near 23850 levels and managed to close just above the psychological 24K marks. It formed a bearish candle with longer lower shadow on daily frame but a bullish candle with long upper shadow on weekly frame. * This indicates tug of war between bulls and bears at different time frames and some profit taking after the sharp spurt of 2600 points in the last three weeks. Now if it manages to hold 23850 zones, than support based buying interest could emerge towards 24250 and 24350 levels while a hold below 23850 could change the short term trend for a further profit booking decline towards 23500 zones

Derivative Outlook:

* Nifty future closed negative with losses of 1.04% at 24120 levels. Positive setup seen in Mphasis, Persistent System, Coforge, MFSL, Tech Mahindra, TCS, INFY, Ultratech Cement, KPIT Tech, IndusInd Bank, Godrej Consumer products, Reliance and Grasim while weakness in SBI Cards, Cyient, ACC, Adani Green Energy, Angel One, Titagarh Rail, IGL, NMDC, Hindustan Copper, Granules and HFCL.

* On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 23500 then 24000 strike. Call writing is seen at 24500 then 25000 strike while Put writing is seen at 23500 then 23800 strike. Option data suggests a broader trading range in between 23500 to 24500 zones while an immediate range between 23600 to 24300 levels.

Global Market:

* European Market – European stocks climbed, buoyed by a rally on Wall Street and the prospect of trade deals progressing between the United States and some of its economic partners. Both Germany and France Index rose 0.5% each.

* Asian Market - Asian stocks gained as signs of progress in trade negotiations supported sentiment, with a major regional benchmark briefly erasing a loss driven by President Donald Trump’s April 2 announcement of reciprocal tariffs. Japan Index gained 1.2%. Taiwan and South Korea Index surged 2% and 1% respectively

* US Data - US Mich 1-year and 5-10 Inflation.

* Commodity - Oil was little changed as China considered suspending tariffs on some US imports, though conflicting messages on trade raised uncertainty about the prospect for easing tensions. Brent traded below $67 a barrel

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