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Market Update

Nifty : 24,722.75 +157.40 (+0.64%)

Sensex : 81,018.72 +418.81 (+0.52%)

* Equity benchmark indices ended on a strong note, with the Sensex rising over 400 points and the Nifty closing above the 24,700 mark, as market sentiment improved significantly. The rally was supported by better-than-expected July auto sales, a 16-month high in the domestic Manufacturing PMI, strong Q1 earnings, and growing optimism that the RBI may announce an interest rate cut during its August 6 policy meeting.

* Global cues also remained favorable, as U.S. index futures along with Asian and European markets edged higher on rising hopes of a U.S. Fed rate cut following weaker-thanexpected jobs data.

* The Nifty jumped 157 points or 0.6% to end at 24,722, while the Sensex advanced 418 points to settle at 81,018. A strong advance-decline ratio of 3:1 in the Nifty 500 highlighted broad-based buying across the market.

* Investors engaged in value buying in sectors that had recently corrected 10–15%, including IT, auto, metals, defence, and NBFCs. Sector indices for these segments rose between 1.5% and 2.5%.

* NBFC major AB capital climbed up by 10% to close at Rs278 after announced good quarterly results. Two wheeler majors Hero Motocorp and TVS Motor gained 5% and 3% respectively after reported impressive July monthly sales data. Metal stocks like SAIL, Tata Steel, Hindalco, GMDC, NLC India and National Aluminum gained between 2-7% due to bargain hunting. IT stocks like LTIMindtree, TCS, Coforge and Tech Mahindra gained between 2-3%. Defense stocks like BDL and BEL gained 2% each due to bargain hunting. Exchange stock like MCX gained 6% to close at Rs7977 after reported good quarterly results

Technical Outlook:

* Nifty index opened positive and steadily rose throughout the day but failed to surpass its previous day’s high. Price action showed support-zone defense as buyers emerged precisely at the key technical confluence of the 24550 zones and it managed to close near its day’s high with gains of around 160 points.

* It formed a bullish candle and an inside bar on daily frame. Now if it holds above 24600 zones, then bounce could be seen towards 24900 then 25000 zones while supports are seen at 24500 and 24442 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.71% at 24803 levels. Positive setup seen in AB Capital, UPL, Delhivery, JSW Energy, Hero MotoCorp, Jindal Steel, Polycab, Jindal Stainless, Poonawalla Fincorp, and JSW Steel while weakness in ABB India, CESC, Godrej Consumer Product, NCC, Power Grid, Siemens, Tata Power, OIL India, ONGC and HDFC Life.

* On option front, Maximum Call OI is at 25000 then 24800 strike while Maximum Put OI is at 24600 then 24700 strike. Call writing is seen at 24850 then 24750 strike while Put writing is seen at 24600 then 24700 strike. Option data suggests a broader trading range in between 24200 to 25200 zones while an immediate range between 24500 to 25000 levels.

Global Market Update

* European Market - European stocks edged higher Monday, rebounding from the declines posted at the end of last week, as investors weighed signs of weakness in the U.S. economy against growing expectations for interest-rate cuts.. Both Germany and France Index decline 1% each.

* Asian Market - Shares in Asia Market witnessed mixed bag after Wall Street had its worst day since May following the release of weak U.S. jobs data. Japan Index declined 1% while China, Australia Index modest gain.

* US Data - Factory order and Durable Goods order.

* Commodity - Crude oil price is trading flat at $70/bbl after falling 3% yesterday. OPEC+ member states to increase oil production in Sept by 547,000 bpd due to stable global economy outlook, favorable market conditions.

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