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Market Update

Nifty : 22,544.70 +207.40 (+0.93%)

Sensex : 74,340.09 +609.86 (+0.83%)

* The equity benchmark index hit a two-week high, rising for the second consecutive session, with the Sensex climbing over 600 points and the Nifty closing above the 22,500 mark. This surge was fueled by positive global and domestic factors, including buying from domestic investors who took advantage of oversold stocks. Financial stocks gained after the Reserve Bank of India (RBI) announced a Rs 1 lakh crore liquidity infusion into the banking system, while energy stocks saw a boost due to falling crude prices. Sentiment was further lifted after the U.S. President granted a one-month exemption to automakers in Canada and Mexico, easing trade tensions and sparking a rally in U.S. and European markets. Asian markets also closed higher on Thursday.

* RBI's announcement of a fresh Rs 1 lakh crore open market operation (OMO) and a $10 billion forex swap to inject liquidity and manage the dollar positively impacted the market. The ongoing decline in crude oil prices, with Brent crude futures dipping below $70 per barrel for the first time in three years, and the U.S. Dollar Index falling to a fourmonth low of 105, also supported market sentiment.

* The Sensex rose by 609 points, or 0.80%, closing at 74,340, while the broader Nifty index gained 207 points to end at 22,544. Nifty Oil & Gas stocks were the top performers, with the Nifty Oil & Gas Index rising 2.6%, driven by the drop in oil prices. HPCL, BPCL, and IOC each saw a 3% rise. Metal stocks continued their upward trend, bolstered by expectations of additional stimulus from China. The Nifty Metal Index surged 2.3%, with Hindustan Copper, Tata Steel, Hindalco, Vedanta, and Jindal Steel all posting gains between 2-5%. Other sectors, including Nifty FMCG, Nifty Auto, Nifty Pharma, and Nifty Smallcap, advanced by 1-2%, fueled by attractive valuations following significant declines in recent months.

Technical Outlook:

* Nifty Index opened positive and after the initial dip to 22250 zones, it witnessed a strong pullback for the rest of the day. It crossed 22550 levels and finally closed with gains of around 210 points. Nifty has recovered by almost 600 points in the last three sessions which has been a breather.

* It formed a small bodied bullish candle on daily frame with longer lower shadow indicating support based buying is intact for the short term recovery. Now it has to hold above 22450 zones for an up move towards 22700 then 22900 zones while supports have shifted higher to 22400 then 22250 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.80% at 22620 levels. Positive setup seen in Jindal Stainless, Berger Paint, Asian Paints, MGL, Coal India, Hindalco, HPCL, VEDL, Chambal Fertilizer, BPCL and NTPC while weakness in Kalyan Jewellers, Coforge, TECHM, Max Health, Jubilant Foodworks, Indus tower, TIIND , Lodha, Trent, TVS Motors, and Zomato.

* On option front, Maximum Call OI is at 23000 then 22500 strike while Maximum Put OI is at 22500 then 22000 strike. Call writing is seen at 22500 then 22800 strike while Put writing is seen at 22500 then 22400 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22300 to 22700 levels.

* Ola Electric Mobility - The Government of India sanctioned a payment of ?73.74 crore towards the incentive for the Determined Sales Value of FY 2023-24 under the PLI auto scheme.

* Indian Railway Finance Corporation – Media reports that the lender forays into power sector lending business.

* Bharat Forge Unit Partners with Taiwan's Compal Electronics to Manufacture Servers in India – Company has entered into a technology licensing agreement with Taiwanbased Compal Electronics. The pact entails the manufacturing of X86 platform servers in India. Compal will provide Kalyani Powertrain with technological support related to servers, including overseeing local production, assembly, testing activities, and final sales.

* Focus on EV stocks – Expect positive for ZF Commercial Vehicle and other EV component stocks after the news that the Tesla linked stocks as the world’s largest EV automaker sets for India debut with a rented space in Mumbai’s BKC.

* Retail Car Sales Falls Over 10% In February - 2W sales down 6.33% at 13,53,280 units. 3W sales down 1.92% at 94,181 units. Car sales down 10.34% at 3,03,398 units. CV sales down 8.60% at 82,763 units. Total auto sales down 7.19% at 18,99,196 units. Car inventory levels remain sticky at 50-52 days, underscoring the mismatch between retail and wholesale.

* R Systems International- Company launching IoT Smart C2C Connector on AWS to Simplify Smart Home Device Integration Challenges.

* Britannia Industries CEO resigns - Britannia Industries’ Chief Executive Officer Rajneet Singh Kohli has resigned to pursue an external opportunity, the company said.

* Maan Aluminium – Company has acquired a building along with leasehold land at Devas in Madhya Pradesh, India, for Rs8.75cr.

Global Market Update

* European Market - European stocks rose, with automakers rallying on news that President Donald Trump was delaying some tariffs on Mexico and China. Focus is also on the European Central Bank meeting later in the day. Germany Index gained 1% while marginally gained France Index. UK Index declined 0.8%

* Asian Market - Asian stocks rose as Chinese shares extended their rally and Donald Trump exempted automakers from newly imposed tariffs on Mexico and Canada for one month. Both Hong Kong and China Index gained 3.5% and 1% respectively. Ongoing anticipation of further stimulus as well as vows to support the development of new technologies such as AI are powering China’s rally after the nation set bullish growth targets for the year at the start of the National People’s Congress on Wednesday

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