Most Market Roundup : Nifty opened slightly negative, saw volatile swings in first hour - Motilal Oswal Wealth Management
Market Update
Nifty : 24,578.35 -346.35 (-1.39%)
Sensex : 81,148.22 -1281.68 (-1.55%)
* Equity benchmarks ended sharply lower, with the Sensex falling over 1,200 points and the Nifty closing below the 24,600 mark, as investors remained cautious ahead of key inflation data releases from both the US and India. Market sentiment was further dampened by profit booking amid ongoing geopolitical tensions between India and Pakistan, despite the announcement of a ceasefire by both nations.
* However, broader markets outperformed, as investor interest shifted toward mid-cap and small-cap segments. The Nifty Midcap Index rose nearly 1%, while the advancedecline ratio for Nifty 500 stocks stood at 1.3:1, reflecting a positive undertone in the broader market.
* The Nifty fell 346 points, or 1.4%, to end at 24,578, while the Sensex dropped 1,281 points, or 1.5%, closing at 81,487. Sectors like IT, Realty, and Metal saw declines ranging from 1% to 3% as traders booked profits following yesterday’s sharp rally of 5–7%.
* In contrast, the Nifty Defense Index was the standout performer, gaining over 4% on the back of expectations for increased demand amid the tense geopolitical environment. Bharat Dynamics led the surge with a gain of more than 11%, closing at Rs.1,746. Other defense-related stocks such as GRSE, Zen Technologies, Data Patterns, HAL, and Mazagon Dock also posted gains of 3–5%.
* Additionally, the Nifty PSU Bank Index advanced 1.5% after strong quarterly results. Canara Bank led the charge with a 4% rise to Rs.104, while Bank of Baroda, Bank of India, Union Bank, and PNB each gained around 2%.
* Globally, markets in Asia and Europe showed mixed trends following news of a temporary trade truce between the world’s two largest economies.
Technical Outlook:
* Nifty opened Nifty opened on a slightly negative note and witnessed volatile swings on both sides during the first hour of trade. Until midday, the buy-on-dips strategy was working well, as the index took support multiple times near the 24700 zone. However, in the second half, Nifty slipped below the 24700 mark, indicating profit booking after a sharp rally of over 900 points in the previous session.
* The break below support suggests some cooling off in momentum, though the broader trend still remains positive above key support levels. It has formed a bearish candle daily frame and started to form higher lows from last two trading sessions. Now it has to cross and hold above 24750 zones for an up move towards 25000 then 25200 zones while supports are placed at 24500 then 24350 zones.
Derivative Outlook:
* Nifty future closed negative with losses of 1.59% at 24646 levels. Positive setup seen in BSE, HAL, IIFL Finance, HAL, BEL, Granules India, Canara Bank, Escorts, Kalyan Jewellers, Divis Lab, Glenmark, Bank Of Baroda and BHEL while weakness in IndusInd Bank, UPL, Chambal Fertilizer, SRF, Power Grid, REC Ltd, Hindalco, Lodha, Godrej Properties and Torrent Power.
* On option front, Maximum Call OI is at 25000 then 25500 strike while Maximum Put OI is at 24000 then 23500 strike. Call writing is seen at 25000 then 24800 strike while Put writing is seen at 24200 then 24000 strike. Option data suggests a broader trading range in between 24100 to 25100 zones while an immediate range between 24400 to 24800 levels.
Global Market Update
* European Market - European stocks advanced as investors hoped the equity rebound could continue following the breakthrough in US-China trade talks. UK, Germany and France Index gained 0.3% each.
* Asian Market - Asian stocks eked out gains, with sentiment getting a boost after the world’s two largest economies agreed to a trade truce. Meanwhile, shares in Hong Kong fell by 2% after a rally on Monday. Japan Index rose 1.4%
* Commodity - Oil prices tick higher in early trade after a temporary pause in U.S.-China tariffs spurred a market rally, but uncertainty around the future of trade negotiations and concerns about rising OPEC+ supply linger. Brent crude is up 0.2% at to $65/bbl.
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