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Market Update

Nifty : 22,337.30 +254.65 (+1.15%)

Sensex : 73,730.23 +740.30 (+1.01%)

* After a 10-day decline, bulls took charge on Dalal Street, with the benchmark Sensex surging over 700 points to reclaim the crucial 73500-mark.

* The Nifty also rose above the 22,000 level, boosted by market optimism following comments from the US Commerce Secretary suggesting that the Trump administration might ease tariffs for Canada and Mexico. Global markets also saw a positive shift, with Asian, European, and US Index Futures rising by 1-3%, driven by hopes of easing global trade tensions. Additionally, falling Brent crude prices, now at a three-month low of $70 per barrel, and a nearly four-month low in the US Dollar Index at 105, contributed to the positive market sentiment.

* Global gains were further supported by China's announcement of a bullish 5% economic growth target for 2025, alongside news that Germany plans to ramp up investment in defense and infrastructure.

* The Nifty 500's advance-decline ratio of 9:1 reflected broad-based buying. The Nifty ended with a 1.14% gain or 254 points at 22,337, breaking a 10-day losing streak, the longest since 1996. The Sensex also posted a 1% gain or 740 points, closing at 73,730 points. Broader markets outperformed the front-line indices, with the Nifty Midcap 100 and Small Cap indices rising by up to 3%. Metal stocks were among the biggest gainers, driven by expectations of improved global demand, as China’s economic growth target and Germany's investment plans boosted sentiment.

* The Nifty Metal Index gained 4%, with stocks like National Aluminum, SAIL, Tata Steel, Jindal Steel, JSW Steel, and Hindustan Copper rising up to 6%. The Nifty Realty, PSU Banks, and PSU Bank Index saw gains of 2-3%, while oil marketing stocks also rose due to the dip in Brent crude prices, with HPCL, BPCL, and IOC climbing 2-4%.

Technical Outlook:

* Nifty Index opened flattish and witnessed a strong comeback of bulls in the first half of the session and headed towards 22400 zones. It was followed by some consolidative move thereafter and finally closed with gains of around 250 points.

* It formed a bullish candle on daily frame and has negated its lower lows formation of the last eight trading sessions. Now it has to hold above 22200 zones for an up move towards 22500 then 22700 zones while supports have shifted higher to 22100 then 22000 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 1.14% at 22445 levels. Positive setup seen in Hindustan Copper, Sona Coms, JSW Energy, Indian Hotel, VEDL, JSW Steel, National Aluminium, NTPC, Chambal Fertilizer, BEL and Laurus Labs while weakness in Bajaj Finance, IndusInd Bank, Balkrishna Industries, HDFC Bank, AU Bank, Prestige Estate, Grasim, VBL, Divis lab, Muthoot Finance, and Voltas.

* On option front, Maximum Call OI is at 22500 then 22600 strike while Maximum Put OI is at 22000 then 21500 strike. Call writing is seen at 22500 then 22350 strike while Put writing is seen at 22200 then 22300 strike. Option data suggests a broader trading range in between 21800 to 22800 zones while an immediate range between 22100 to 22500 levels.

* PSP Projects Gets CCI Approval to Sell 30% Stake to Adani Infra – Company has received approval from the Competition Commission of India for the sale of a 30% stake in the company to Adani Infra (India)

* City Union Bank – Company has opened two new branches in India taking its total network to 845 branches

* Trent - Westside store addition in the fourth quarter. This is the highest in at least the last two years. The company's website today shows 269 stores for Westside in comparison to 238 stores as of December 2024. Zudio stores at 672 implied that 37 stores were added in the fourth quarter so far.

* Tech Mahindra partners with Telefónica España to enhance its network operations – Company signed an agreement with Telefónica España, a major telecommunications provider in Spain to enhance its network operations. The agreement will see Tech Mahindra provide operational support across network domains, service platforms, and TV services, transforming Telefónica España's infrastructure through unified workflows and seamless operations.

* KEC International – Company received income tax refund worth Rs 177 crore.

* Solar Industries – Company received export orders worth Rs 2,150 crore on Feb. 28. The orders are for supply of defence products.

* Trump announces reciprocal tariffs against India, China from April 2 - US President Donald Trump criticised the high tariffs charged by India and other countries including China, calling it “very unfair” and announcing reciprocal tariffs will kick in from next month. The president made his case for his reciprocal tariffs, which will commence April 2.

Global Market Update

* European Market - European stock markets rebounded after a top US official signalled that President Donald Trump could dial down huge tariffs on Canada and Mexico this week. German stocks also boosted by plans by Germany's likely next chancellor Friedrich Merz's to pour billions of euros in extra spending on defence and infrastructure. Germany Index gained 3%. Both UK and France Index gained 2% and 1% each.

* Asian Market - Asian equities rose after the Trump administration indicated it could roll back some tariffs and China announced economic targets that raised expectations for more stimulus. Hong Kong Index rose 3% after China maintained its economic growth target at about 5% for 2025. Both South Korea and Taiwan Index gained over 1% each.

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