MOSt Market Roundup : Nifty Index opened positive near 23600 zones but witnessed some rub off from those levels in the second half - Motilal Oswal Wealth Management
Market Update
Nifty : 23,519.35 -72.60 (-0.31%) Sensex : 77,414.92 -191.51 (-0.25%)
* Equity benchmark Nifty closed marginally lower, underperforming the broader market as investors remained cautious ahead of the resorcinol tariff set to be imposed on April 2. Additionally, traders booked profits ahead of the long weekend, as domestic markets will be closed on Monday.
* Global markets saw a sharp decline due to escalating trade war concerns after U.S. President Donald Trump moved forward with tariffs on all auto imports. Nifty slipped 72 points, or 0.30%, to close at 23,519, while the Sensex dropped 191 points, or 0.3%, to settle at 77,336. The broader market followed suit, with the Nifty Midcap index declining 0.3%.
* Sector-wise, realty, auto, and metal stocks were the major laggards, losing up to 2%. However, private banks and FMCG stocks attracted fresh buying interest. Exchange stock BSE Ltd surged 17% to close at 5,479 following news that NSE postponed the implementation of the F&O expiry scheduled for Monday, aligning with SEBI’s proposal to limit equity derivatives expiries to Tuesdays or Thursdays. Additionally, BSE is set to consider a bonus issue in its board meeting on Sunday.
* Despite today's weakness, the Nifty saw a sharp recovery in the second half of March, fueled by strong FPI inflows, helping frontline indices end FY25 with a solid 6% gain. Foreign Institutional Investors (FIIs) recorded net purchases of over Rs.11,000 crore, largely due to short covering. For March (excluding today), FIIs were net buyers of over Rs.6,300 crore, marking their first net buying month in the last five months.
Technical Outlook:
* Nifty Index opened positive near 23600 zones but witnessed some rub off from those levels in the second half. It recovered a tad bit but was overall in pressure and closed with losses of around 70 points. It formed a small bodied bearish candle on the daily frame and a doji sort of a candle on weekly basis.
* It has started to form higher highs – higher lows from the last three weeks but some cool off and resistance was faced near 23900 levels. Now if it manages to hold above 23500 zones then bounce could be seen towards 23750 then 23900 zones while on the downside support can be seen at 23400 then 23200 zones.
Derivative Outlook:
* Nifty future closed negative with losses of 0.57% at 23643 levels. Positive setup seen in BSE, IGL, Tata Consumer, Muthoot Finance, Britannia, Poona Wala Fincorp, Union Bank of India, MCX, Kotak Bank, Glenmark, Apollo Hospital, Ramco Cements and IRCTC while weakness in SonaComs, IndusInd Bank, IDFC First Bank, Wipro, LTIM, Dixon Tech, Cipla, Ashok Leyland, Maruti, KPIT Tech, M&M and HFCL.
* On option front, Maximum Call OI is at 24500 then 24000 strike while Maximum Put OI is at 23500 then 23000 strike. Call writing is seen at 23600 then 23800 strike while Put writing is seen at 23500 then 23300 strike. Option data suggests a broader trading range in between 23000 to 24000 zones while an immediate range between 23300 to 23700 levels.
* Saudi Aramco draws India investment plan on report of BPCL and ONGC - Media reports that Saudi Aramco was in discussions to invest in two planned refineries in India. Aramco is specifically targeting BPCL’s refinery in Andhra Pradesh and ONGC’s refinery in Gujarat. India's Prime Minister Narendra Modi is scheduled to visit Saudi Arabia in the second quarter, and both countries aim to reach an agreement before this visit.
* HUDCO - Company is set to consider a borrowing program of up to Rs 65,000 crore for the fiscal year 2026 during a meeting on April 4.
* IPCA Labs - Company announced to sell formulation business at Palghar for Rs36.9cr. Company to buy Unichem Irlend for Rs4cr.
* Central Bank of India - Company raised Rs1500cr through a qualified institutional placement at Rs40.49 a share (CMP 43).
* Bank of India - Media reports that the lender entered a strategic partnership with New India Assurance to offer a wide range of general insurance products to customers.
* Fitch Ratings - Global rating agency has affirmed Canara Bank's, Bank of Baroda, SBI, Bank of India Long-Term Issuer Default Rating (IDR)at 'BBB-'. The Outlook is Stable Global Market Update.
* Hudco - Company to consider FY26 borrowing program to Rs65000cr.
Global Market update
* European Market - European stocks fell for the third session in a row on Friday, extending a slide as investors weigh the potential consequences of a widening trade war. UK, France and Germany’s DAX down 0.3% each.
* Asian Market - Auto companies once again took the brunt of the selling on another tough day for Asian markets after US President Donald Trump announced steep tariffs on vehicle imports to go with a wave of other US levies penciled in for next week. Japan, South Korea, South Korea and Hong Kong Index declined between 1-1.5%.
* US Data - Personal Income, PCE, Personal Consumption.
* Commodity - Oil prices held near one-month highs on Friday and were poised for a third weekly gain on a tightening global supply outlook after the US imposed tariffs against countries buying oil and gas from Venezuela and placed restrictions on Iranian oil.
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
