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Market Update

Nifty : 25,637.80 +88.80 (+0.35%)

Sensex : 84,058.90 +303.03 (+0.36%)

* Equity benchmark Nifty extended its winning streak for the fourth consecutive session, driven largely by gains in heavyweight stocks such as Reliance Industries, ICICI Bank, Ultratech Cement, Asian Paints, Hindustan Unilever, and Bharti Airtel. These key players helped propel the benchmark indices closer to their record highs seen in September.

* Positive global cues also supported sentiment, including a record closing high for the US S&P 500 Index, net foreign institutional investor (FII) inflows of nearly ?13,000 crore yesterday, easing geopolitical tensions in the Middle East, expectations of a US Fed rate cut, and reports suggesting a possible extension of the US tariff hike deadline.

* The Sensex ended the day up 303 points, or 0.40%, at 84,058, while the Nifty rose 89 points, or 0.40%, to close at 25,637. Over the past four sessions, the Sensex has gained 2,162 points (nearly 3%), with the Nifty also rising by a similar margin.

* Sectorally, indices related to oil & gas, paints, defense, small caps, and pharmaceuticals posted gains of up to 1%. Cement stocks saw renewed buying interest on expectations of stronger post-monsoon demand, with JK Cement, Ultratech Cement, and India Cements advancing between 2–5%.

* Paint stocks like Asian Paints, Berger Paints, and Nerolac Paints rose up to 2% following news that JSW Paints will acquire a majority stake in Akzo Nobel India for around ?9,000 crore. Akzo Nobel shares jumped 7% to close at ?3,418.

• Oil marketing companies HPCL and BPCL also gained 3% and 1%, respectively, benefiting from a sharp fall in global crude prices. Brent crude has dropped nearly 20% from its recent high of above $81 per barrel to $68 per barrel amid easing geopolitical tensions.

* Globally, Asian and European markets closed about 1% higher on optimism surrounding trade negotiations and rising expectations of US interest rate cuts later this year. +303.03 (+0.36%)

Technical Outlook:

* Nifty index opened positive and displayed continued performance and extended its gains to touch intraday high of 25654 levels. After the morning escalation, it witnessed consolidation in the second half and remained muted. It finally closed near its higher band with gains of around 90 points. It formed a small bodied bullish candle on daily frame with justifying the previous day’s breakout with follow up buying and has been making higher lows from the last six sessions.

* It formed a big bullish candle on the weekly frame and moved by 830 points after the consolidation of the last five weeks. Now it has to hold above 25500, for an up move towards 25850 and 26000 zones while supports have shifted higher to 25500 then 25350 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.55% at 25757 levels. Positive setup seen in MGL, JioFin, IGL, Lauruslab, Max Health, Ultratech, Apollo Hospitals, Hindustan copper, Indigo, Reliance, RBL bank, HDFCAMC, BEL and Coforge while weakness in Patanjali, Mazdock, Sonacoms, Syngene, ONGC, Apollo Tubes, Indian Hotels, OIL, Havells and Phoenix mills.

* On option front, Maximum Call OI is at 25600 then 26000 strike while Maximum Put OI is at 25500 then 25000 strike. Call writing is seen at 25900 then 26000 strike while Put writing is seen at 25600 then 25500 strike. Option data suggests a broader trading range in between 25000 to 26000 zones while an immediate range between 25400 to 25800 levels.

Global Market Update

* European Market - European stocks gained and were set for a weekly advance after US Commerce Secretary Howard Lutnick indicated the US has plans to reach agreements with ten major trading partners. . Germany Index gained 1.4% while France Index gain 0.8%.

* Asian Market - Asian stocks advanced and a gauge of global equities was on track for another record high on trade-deal optimism and increased expectations for Federal Reserve interest-rate cuts this year. Japan Index rose 1.4% while Hong Kong and China Index declined up to 0.6%.

* US Data - Personal Spending, PCE and Personal Consumption.

* Commodity - Crude oil prices is trading flat at $68/bbl after a ceasefire between Israel and Iran, with focus shifting from the conflict in the Middle East to US trade negotiations.

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