MOSt Market Roundup : Nifty plunges 150 points, breaches key support to hit 22,786 low - Motilal Oswal Wealth Management
Market Update
* European Market - European stocks dropped, led by the technology sector, as Chinese artificial-intelligence startup Deepseek raised questions about the high valuations of current leaders in the space. Chip-equipment maker ASML Holding NV slumped. Both Germany and France Index decline 1% each.
* Asian Market - Asian markets mostly fell Monday on fresh trade fears after Donald Trump's threat to impose huge tariffs on Colombia in retaliation for its refusal to accept deportation flights from the United States.
* Traders were also assessing the impact of a new, cheaper Chinese generative AI programme amid claims it can outperform big-name rivals and worries that a recent surge in the sector may be called into question. Japan Index slipped 1% while China Index gained 0.7%.
* The Pharma Index fell 2.5% after the US froze new funding for anti-HIV and other health programs. Laurus Labs tumbled 11%, closing at Rs 534, while Gland Pharma, Granules, IPCA Labs, Ajanta Pharma, and Glenmark Pharma lost between 4-8%.
* On the global front, both Japan and European indices declined by 1%, driven by losses in the technology sector, as concerns about the valuation of AI leaders rose following DeepSeek's claims. However, China's market rose by 0.7%
Technical Outlook:
* Nifty index opened gap down by 150 points and sank lower throughout the day to breach an important support level to touch intraday low of 22786 marks. It witnessed a tad bit recovery in the last hour but closed with losses of around 260 points. It formed a bearish candle on daily frame and has been making lower lows from the last two sessions.
* Now till it holds below 22950 zones, weakness could be seen towards 22650 then 22500 zones whereas hurdles are placed at 22950 then 23050 zones.
Derivative Outlook:
* Nifty future closed negative with losses of 1.22% at 22831 levels. Positive setup seen in Bank Of India, Torrent Pharma, LTF, ICICI Bank, Britannia Industries, HUL, JK Cement Pidilite Industries and Maruti while weakness in CDSL, IDFC First Bank, PEL, Supreme Industries, KEI Industries, Naukri, Angel One, Exide Industries, LTI Mindtree, United Spirits and Bsoft.
* On option front, Maximum Call OI is at 24000 then 23000 strike while Maximum Put OI is at 22500 then 22800 strike. Call writing is seen at 23000 then 23100 strike while Put writing is seen at 22400 then 22900 strike. Option data suggests a broader trading range in between 22300 to 23300 zones while an immediate range between 22600 to 23100 levels.
* Govt. inks Rs.3,800 crore BrahMos missile deal with Indonesia – Government has secured an agreement to export Brahmos missiles worth around ?3,800 crore (USD 450 million) to Indonesia. India is one of the few countries in the world capable of building aircraft carriers indigenously.
* Larsen & Toubro – Company has emerged as the preferred engineering, procurement, construction contractor for a solar PV and battery storage giga scale project in Abu Dhabi.
* Prime Securities – Company approved share buyback upto 6 lakh shares or 1.9% equity at Rs 305/share
* LT Foods – Company approves acquisition of 4% in unit Raghunath Agro
* JSW Steel – Company has won a mine operator and developer contract of two blocks of copper mines in Jharkhand from state-owned Hindustan Copper Ltd. The project involves operationalizing the two mines and setting up of a copper concentrator plant with an estimated investment worth of Rs 2600cr – Positive
* LT Foods Q3 FY25 - Net Profit Rs143cr (down 6% YoY), Revenue Rs2275cr (up 17% YoY), Ebitda Rs251cr (up 5% YoY) and Ebitda Margin 11% vs 12.3% YoY
* Vascon Engineers Q3 FY25 - Net Profit Rs76cr (up 369% YoY), Revenue Rs294.3cr (up 44% YoY), Ebitda Rs19.6cr (down 2.5% YoY) and Ebitda Margin 6.7% vs 9.8% YoY
* Sumitomo ChemicalQ3 FY25 - Net Profit Rs87cr (up 58.2% YoY), Revenue Rs642cr (up 18.5% YoY), Ebitda Rs106cr (up 61% YoY) and Ebitda Margin 16.5% vs 12% YoY
* Indian Oil Q3 FY25 Net Profit Rs2874cr (down 65% YoY). Revenue Rs1.94 lakh cr (down 24.5% YoY) , Ebitda Rs7116cr (down 54.4% YoY) and Ebitda Margin 3.7% vs 7.8% YoY
Global Market Update
* European Market - European stocks dropped, led by the technology sector, as Chinese artificial-intelligence startup Deepseek raised questions about the high valuations of current leaders in the space. Chip-equipment maker ASML Holding NV slumped. Both Germany and France Index decline 1% each.
* Asian Market - Asian markets mostly fell Monday on fresh trade fears after Donald Trump's threat to impose huge tariffs on Colombia in retaliation for its refusal to accept deportation flights from the United States. Traders were also assessing the impact of a new, cheaper Chinese generative AI programme amid claims it can outperform big-name rivals and worries that a recent surge in the sector may be called into question. Japan Index slipped 1% while China Index gained 0.7%.
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