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Market Update

Nifty : 24,379.60 -81.55 (-0.33%)

Sensex : 80,641.07 -155.77 (-0.19%)

* The equity benchmarks, Sensex and Nifty, ended with a slight decline, while mid-cap and small-cap stocks saw a sharp drop as investors remained cautious amidst rising geopolitical tensions between India and Pakistan, which dampened market sentiment.

* The Nifty 500 stocks' advance-decline ratio was 1:4, indicating significant profit booking in mid-cap and small-cap stocks, which fell over 2% each. Additionally, concerns over the US-China trade negotiations and anticipation of the US Federal Reserve's interest rate decision, set to be announced tomorrow, contributed to increased intra-day volatility.

* The Nifty dropped 81 points, or 0.3%, closing at 24,379. PSU Banks were the biggest losers of the day, following Bank of Baroda's weak Q4 results.

* The stock plunged 10% to close at Rs 223, while other banks such as Union Bank, Bank of India, PNB, and IOB saw declines of 5-7%. Real estate stocks also faced profit booking, with the Nifty Realty Index falling 3.5%. Godrej Properties dropped 6% to Rs 2,088, while other realty stocks like Sobha, Prestige Estates, and Oberoi Realty fell by 4-5%.

* The Nifty Oil & Gas, Defense, Metal, and IT indices each declined by 1-2% due to profit taking.

* Global markets also experienced a downturn as several corporate earnings reports highlighted concerns over the damaging effects of the trade war on companies and the global economy

Technical Outlook:

* Nifty Index opened positive but failed to hold its opening levels above 24500 zones and sank sharply by 130 points in the first hour. It was followed by the index moving in a very narrow band of around 50-60 points for the rest of the day.

* It formed a bearish candle on daily frame to close with losses of around 80 points and has started to form lower highs from the last two sessions. Now it has to cross and hold above 24400 zones for strength to regain towards 24650 then 24750 zones while supports can be seen at 24200 then 24050 zones

Derivative Outlook:

* Nifty future closed negative with losses of 0.56% at 24415 levels. Positive setup seen in Hero MotoCorp, Bharti Airtel, Max healthcare, Biocon, Tata Steel, Muthoot Finance, Hindustan Unilever, Eicher Motors, Polycab, United Spirits, Maruti, Balkrishna Industries and Nestle India while weakness in Bank Of Baroda, CG Power, Indian Hotel, Union Bank Of India, Bank Of India, NCC, IREDA, Godrej Properties, Angel One, CDSL and PNB.

* On option front, Maximum Call OI is at 24500 then 25000 strike while Maximum Put OI is at 24400 then 24000 strike. Call writing is seen at 24400 then 24500 strike while Put writing is seen at 24400 then 24200 strike. Option data suggests a broader trading range in between 23800 to 24800 zones while an immediate range between 24100 to 24600 levels.

Global Market Updat

* European Market - European stocks dropped as Friedrich Merz failed to get a majority in an initial vote in the lower house of parliament to confirm him as Germany’s next chancellor. Investors also parsed a mixed bag of earnings

* Asian Market - Shares were mixed Tuesday in Asia after benchmarks fell on Wall Street, snapping a nine-day winning streak. A monthly survey measuring future activity in China's services sector fell to its lowest level ever, excluding the pandemic, in a further sign the escalation of U.S. President Donald Trump's trade war is hitting the world's second-largest economy.

* US Data - MBA Mortgage Application.

* Commodity - Oil climbed 2% to above $61/bbl from the lowest close in four years after technical measures suggested crude’s recent plunge may have overstretched.

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