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• Equity benchmark Nifty slipped 0.5%, closing below the 25,800 mark, as investors booked profits after a strong six-session rally. Market sentiment turned cautious amid concerns over the U.S.-India trade deal, a rise in crude oil prices to a nearly six-month high of $66 per barrel, and foreign institutional investors (FIIs) turning net sellers by over Rs 1,100 crore in the previous session.

• Additionally, traders adopted a wait-and-watch approach following the release of the domestic HSBC PMI data and ahead of the U.S. inflation report due later today. Banking stocks led the decline, with HDFC Bank accounting for nearly half of Nifty’s losses. The Nifty IT, FMCG, and Auto indices also fell up to 1% amid profit booking.

• However, metal stocks bucked the trend, witnessing renewed buying interest on optimism around China’s stimulus measures, which pushed base metal prices higher on the LME.

• The Sensex dropped 344 points (0.41%) to 84,211, while the Nifty ended 96 points (0.40%) lower at 25,795. Broader markets also ended weak, with the Nifty 500 advancedecline ratio at 2:3, reflecting widespread profit-taking.

• Among global markets, Asian and European markets advanced, supported by optimism ahead of a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping next week, which eased trade tensions, while investors awaited corporate earnings and U.S. inflation data.

Technical Outlook:

• Nifty opened on a positive note but failed to hold its opening levels and drifted lower throughout the day. Profit booking took some pause at 25700 zones and witnessed some consolidation in the last couple of hours. It formed a bearish candle on the daily frame with longer lower shadow indicating buying is intact at support levels.

• It formed a bearish candle on weekly frame with longer upper shadow and trimmed most of the early gains but continues to form higher highs from the last three weeks. Now it has to hold above 25700 zones for an up move towards 26000 then 26250 zones while supports can be seen at 25700 then 25600 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.63% at 25814 levels. Positive setup seen in Samman Capital, Hindalco, National Aluminium, VEDL, Cummins India, PNB Housing, Cholamandalam Investment, HFCL, Voltas and KFIN Technologies while weakness in Hindustan Unilever, Supreme Industries, Cipla, Colpal, Ultratech Cement, Adani Ports, Max Healthcare, Glenmark, Adani Enterprise and BHEL.

• On option front, Maximum Call OI is at 26000 then 26500 strike while Maximum Put OI is at 25500 then 25700 strike. Call writing is seen at 26000 then 25900 strike while Put writing is seen at 25700 then 25750 strike. Option data suggests a broader trading range in between 25300 to 26200 zones while an immediate range between 25500 to 26000 levels.

• Stallion India Fluorochemicals - Company has started groundwork at its 10,000 metric tonne manufacturing facility in Bhilwara, Rajasthan.

• October PMI - HSBC Composite PMI falling to 59.9 from 61 in September. The Manufacturing PMI rose to 58.4 from 57.7, while the Services PMI declined to 58.8 from 60.9 a month earlier.

• Federal Bank - Company is set to issue 27 crore warrants worth Rs 6,196 crore on preferential basis. The bank will issue 27 crore warrants at Rs 227 a share to Blackstone. Blackstone is to get the right to nominate one Non-Executive Director once it holds at least 5% stake.

• Thyrocare Founder Docon Sells 10% Stake for $76.2 Million - Company’s foununder firm Docon Technologies Pvt. sold about 10% stake in the company for 6.68 billion rupees ($76.2 million) through market trades on Friday.

• Hyundai Motor India Opens Booking for New Version of Compact SUV - Hyundai Motor India has opened bookings of the new version of its compact sport utility vehicle (SUV) Hyundai VENUE. • Bajaj Auto - Company got Austrian takeover commission approval to acquire Pierer Mobility, KTM AG.

Global Market Update

• Asian Market - Asian stocks advanced, as confirmation of a meeting next week between US President Donald Trump and his Chinese counterpart Xi Jinping bolstered investor mood.

• European Market - European stocks rose as a planned meeting between Donald Trump and Xi Jinping next week eased trade concerns. Investors are also watching earnings and US inflation data. UK, Germany and France Index gain up to 0.5%.

• Commodity - Oil prices fall slightly after rallying on additional U.S sanctions on Russia's energy sector. Prices fall with Brent crude down 0.6% to $65.60 a barrel.

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