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Market Update

Nifty : 22,460.30 -92.20 (-0.41%)

Sensex : 74,115.17 -217.41 (-0.29%)

* The Sensex and Nifty ended the day about 0.5% lower, following a three-session rally, as weak US nonfarm payroll data sparked concerns about an economic slowdown. Traders took profits at higher levels due to geopolitical tensions between Russia and Ukraine, a decline in US Index Futures of over 0.5%, and ongoing trade conflicts between the US, China, and Mexico, all of which dampened market sentiment.

* Domestically, the market was also affected by the anticipated imposition of reciprocal traffic measures in India next month and continued selling by foreign institutional investors (FIIs). While both indices opened flat, they gained momentum early on but couldn't maintain the upward trend throughout the day.

* The Nifty closed 0.50% lower, dropping 92 points to 22,460, with an intraday high of 22,676. The Nifty 500 stocks had an advance-to-decline ratio of 1:4, reflecting profit-taking in mid- and small-cap stocks. Sectors such as Nifty Realty, Oil & Gas, PSU Banks, Auto, and Metal stocks saw declines of 1-2%, while the FMCG index ended in positive territory.

* FMCG stocks like Hindustan Unilever, Emami, and Nestle rose between 1-3%, after Finance Minister Nirmala Sitharaman announced that GST rates would be further reduced as the rationalization of tax slabs nears completion. Globally, both Asian and European markets declined due to concerns over US economic growth and the effects of tariffs.

* China's consumer price index (CPI) dropped sharply in February, marking the steepest decline in 13 months, while producer price deflation continued for the 30th consecutive month, fueling concerns about global growth amid the slowing US economy and escalating trade tensions.

Technical Outlook:

* Nifty opened on a flattish note and witnessed buying interest in the first hour, pushing the index higher. However, after the initial up move, the momentum faded leading to a sideways move within a tight 60-70 point range until midday. In the latter half of the session, bears made a strong comeback, erasing all intraday gains and dragging the index lower.

* The index made a high of 22676 which coincided with its 20 DEMA from where it witnessed profit booking. It formed a bearish candle with longer upper shadow indicating pressure at higher zone. Now if it manages to cross and hold above 22500 zones then bounce could be seen towards 22650 then 22800 zones while supports can be seen at 22350 then 22222 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.63% at 22507 levels. Positive setup seen in Solar Industries, JSW Energy, Power Grid, Hindustan Unilever, Torrent Power, SBI Card, Nestle India, Asian Paints, ICICI Lombard, HDFC Life and MFSL while weakness in Titagarh Rail, BSOFT, Dixon, KEI Industries, IRFC, Kalyan Jewellers, CDSL, CG Power, BSE, IndusInd Bank and Trent.

* On option front, Maximum Call OI is at 23000 then 22700 strike while Maximum Put OI is at 22000 then 22500 strike. Call writing is seen at 22700 then 22600 strike while Put writing is seen at 22000 then 22500 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22200 to 22700 levels.

* Ola Electric Mobility - Bloomberg News reported late Friday that the company’s expansion into physical showrooms is facing regulatory trouble.

* IREDA - The RBI has not acceded to its request for equity investment in developing and implementing the 900 MW Upper Karnali Hydro Electric Power Project in Nepal.

* Coforge launches GenAI Center of Excellence with ServiceNow – Company has expanded its partnership with ServiceNow to launch a Generative Artificial Intelligence (GenAI) Center of Excellence (CoE) in Greater Noida. The initiative integrates Coforge’s AI framework, Quasar, with ServiceNow AI Agents to support businesses in adopting AI-driven solutions.

* Sun Pharma to acquire US listed Checkpoint Therapeutics up to $355mn – Company announced that it will acquire US-based Checkpoint Therapeutics Inc for up to USD 355 million. Checkpoint is a Nasdaq-listed commercial-stage company focused on developing novel treatments for patients with solid tumor cancers.

* Godrej Consumer starts commercial production at new unit in Tamil Nadu – Company has started commercial production at a new manufacturing facility in Chennai, Tamil Nadu. The new unit will produce home and personal care products. The company estimates the factory generating a Rs1500cr in turnover once all planned production lines are fully operational. The company has earmarked an investment of Rs515cr in the new manufacturing facility in Tamil Nadu over the next five years.

* Mphasis partners with SecPod to strengthen cybersecurity solutions – Company has announced a partnership with cybersecurity firm SecPod to enhance vulnerability management services for enterprises. Through this collaboration, Mphasis will integrate SecPod’s SanerNow Continuous Vulnerability and Exposure Management (CVEM) platform into its security offerings.

* Vardhman Polytex to close operations at Ludhiana – Company has decided to close operations at its manufacturing unit in Ludhiana. The company decided to close to operations to explore various avenues for the monetization of real estate potential of the land. This sale is part of the company's plan to raise funds to repay outstanding liabilities to lenders and support the company's growth initiatives.

Global Market Update

* European Market - European equities were muted on Monday amid concerns about US economic growth and the impact of tariffs. UK, Germany and France Index declined 0.2% each.

*Asian Market - Hong Kong and China stocks lead Asian markets lower as concern mounts about the pace of growth in the mainland and the outlook for the US economy. The Hang Seng Index falls 2.3% while the city’s tech gauge slides more than 3%. In China, the CSI 300 and Shanghai Composite both tumble after weekend data show inflation falling below zero.

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