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Market Update

Nifty : 25,461.30 +0.30 (+0.00%)

Sensex : 83,442.50 +9.61 (+0.01%)

* Equity benchmark indices ended the day nearly flat but with a slight positive tilt, as investor sentiment remained cautious due to renewed concerns over trade tariffs. The U.S. government is reportedly preparing to notify its trade partners about new tariffs. Meanwhile, President Donald Trump stated that the country is close to finalizing several trade agreements, expected to be concluded within the next few days. He also mentioned that the U.S. will formally communicate increased tariff rates to other nations by July 9, with implementation set for August 1.

* The Nifty ended marginally lower at 24,460 in a largely range-bound session. Market breadth remained weak, with the advance-decline ratio for Nifty 500 stocks at 1:2, pointing to profit-taking, particularly in mid-cap and small-cap segments. Globally, markets experienced some pressure amid rising uncertainty over the U.S.'s global tariff strategy and renewed tensions in U.S.-China trade relations.

* On the domestic front, apprehensions regarding the U.S.-India trade deal and ongoing foreign institutional investor (FII) selling weighed on sentiment. There are also indications that a temporary trade agreement between the U.S. and India might be announced before the July 9 tariff deadline.

* Sector-wise, most segments such as auto, metal, and IT traded either flat or in the red. PSU banks saw profit booking at higher levels. On the other hand, FMCG stocks attracted fresh buying interest, with the Nifty FMCG Index rising by 1.2% after positive Q1FY26 business updates from Godrej Consumer and Dabur India. Stocks like Colgate-Palmolive (India), Marico, Tata Consumer Products, Dabur India, and Godrej Consumer saw gains ranging from 1% to 5%.

Technical Outlook:

* Nifty index opened flattish and after it failed to cross 25500 zones it made an early swing low near 25400 zones from where it was seen taking support. It oscillated in a narrow band of 80 points throughout the day and bulls refused to give up control. Clear directional move is to be only seen if it escapes the current range.

* It formed a small bodied candle on daily frame but negated its lower highs formation of the last two sessions. Now it has to cross and hold above 25500 zones, for an up move towards 25650 and then 25800 else weakness can be seen towards 25350 then 25222 zones.

Derivative Outlook:

* Nifty future closed positive with marginal gains at 25541 levels. Positive setup seen in Dabur, Hindustan Uniliver, IIFL, Cummins India, CESC, Dixon, LTF, Delhivery, Reliance, BPCL, Apollo Hospitals, Max Healthcare and AB Capital while weakness in Havells, Sonacoms, Hindustan Zinc, Syngene, Oberoi Realty, OIL, RVNL, ONGC, Chambal Fertilizers and Patanjali.

* On option front, Maximum Call OI is at 25500 then 26000 strike while Maximum Put OI is at 25400 then 25300 strike. Call writing is seen at 25500 then 25600 strike while Put writing is seen at 25400 then 25300 strike. Option data suggests a broader trading range in between 25000 to 26000 zones while an immediate range between 25300 to 25700 levels.

Global Market Update

* European Market - European stocks held steady as US President Donald Trump dialed up the uncertainty over his global tariff agenda, while trade tensions with China escalated. Both Germany and France Index are trading flat. * Asian Market - Asian equities fell in nervous trading after US President Donald Trump said tariff letters would start being delivered from noon Monday. Japan Index declined,Hong Kong and Australia Index declined 0.5% each.

* US Data - Small Business Optimism.

* Commodity - Oil pushed marginally lower at $68/bbl after OPEC+ agreed to a bigger-than-expected production increase next month, raising concerns about oversupply just as US tariffs fan fears about the demand outlook.

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