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Market Update

Nifty : 25,082.30 -67.55 (-0.27%)

Sensex : 82,253.46 -247.01 (-0.30%)

*  The equity benchmark Nifty extended its losing streak to a fourth straight session, closing below the 25,100 mark, as weakness in financial and IT stocks continued to weigh on market sentiment. Investors remained cautious amid ongoing global trade tensions, with attention also focused on domestic CPI data set to be released post-market today. Continued selling by foreign institutional investors (FIIs) and disappointing Q1 results from TCS further dampened sentiment.

*  Concerns about a potential global trade war intensified after U.S. President Donald Trump announced a 30% tariff on imports from the European Union and Mexico, effective August 1. This led to a decline of up to 0.5% across U.S. index futures, as well as European and Asian markets.

*  Nifty ended the day down 62 points, or 0.25%, at 25,087, driven by profit booking in blue-chip stocks such as Wipro, Asian Paints, L&T, Infosys, and Bajaj Finance. Over the last four sessions, the index has dropped nearly 2%.

*  In contrast, broader markets showed resilience, with both the Nifty Midcap and Smallcap indices gaining around 1% each. The Nifty 500 advance-decline ratio stood at a healthy 2:1, indicating a shift in trader focus towards mid- and small-cap stocks ahead of earnings season.

*  Sector-wise, Nifty Realty, PSU Bank, and Pharma indices were top performers, rising up to 1%. Gains in PSU Banks and Realty stocks were supported by expectations of an RBI rate cut, following the June wholesale inflation figure easing to a 21-month low of -0.13%.

Technical Outlook:

*  Nifty index opened flattish but cascaded through most part of the day right from the start of the session. It took support at the psychological 25k marks after which the sustained selling pressure took a pause. The second half saw some recovery and it closed with losses of around 70 points.

*  It formed a bearish candle on daily frame and has begun to slope downward as its making lower top - lower bottom structure indicating some selling pressure is intact at bounce. Now till it holds below 25150 zones, weakness could be seen towards 25000 then 24800 zones while hurdles are shifting lower at 25222 then 25350 zones.

Derivative Outlook:

*  Nifty future closed negative with losses of 0.20% at 25173 levels. Positive setup seen in PEL, Laurus Labs, Oil India, Mankind Pharma, SBI Life, Indigo, CESC, ICICI Lombard, Fortis, Eternal and Pay TM while weakness in SBI Card, Mazdock, ABB, TCS, Oberoi Realty, Techm, INFY, IRCTC, BDL, LT and Solar Industries.

*  On option front, maximum Call OI is at 25500 then 25300 strike while maximum Put OI is at 25000 then 25100 strike. Call writing is seen at 25100 then 25200 strike while Put writing is seen at 25100 then 25000 strike. Option data suggests a broader trading range in between 24600 to 25600 zones while an immediate range between 24800 to 25300 levels.

Global Market Update

*  European Market - European markets mostly fell as investors digested Donald Trump's latest trade war salvos that saw him threaten to hit the European Union and Mexico with 30 percent tariffs. Both Germany and France Index decline 0.3% each.

*  Asian Market - Asian stocks edged lower, as renewed trade tensions rattled investor sentiment following fresh tariff threats from Washington over the weekend.

*  Commodity - Brent Crude rise 1% to above $71/bbl after the International Energy Agency said the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power generation.

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