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Market Update

Nifty : 26,068.15 -124.00 (-0.47%)

Sensex : 85,231.92 -400.76 (-0.47%)

* Equity benchmark Nifty declined by half a percent amid broad weakness in global markets. Asian and European indices dropped up to 3% on concerns over elevated technology valuations and uncertainty surrounding potential U.S. interest rate cuts. Domestically, the USD/INR slid to a record low of 89.16, while the India VIX spiked 13% to a five-month high above 13, signaling increased caution among traders amid global volatility.

* Adding to the pressure, India’s October Manufacturing PMI fell to a six-month low, and core sector growth hit a 14-month low, further weighing on sentiment. The Nifty slipped 122 points, or 0.5%, to close at 26,068.

* The market saw broad-based selling, with Nifty Metal, Realty, PSU Bank, and Defence indices declining 1–2%. Nifty 500 stocks advance decline ratio was 1:4, indicating profit booking on mid-cap and small cap stocks. The Nifty Metal Index fell 2% following reports that the government has eased several steel import regulations to support smaller businesses. The defence index also dropped 2% due to profit booking after reports of progress toward a Russia–Ukraine peace deal.

* However, auto stocks such as Maruti and M&M bucked the trend, gaining on the back of strong quarterly earnings and robust monthly sales data.

Technical Outlook:

* Nifty index opened on a negative note and oscillated with volatile two-way swings throughout the session. After the sharp recent rally, a bout of healthy profit booking emerged, keeping the index under mild pressure. Despite the intraday weakness, key support zones are still holding well, and the overall trend remains positive.

* On the daily chart, Nifty formed a bearish candle with a long upper shadow, suggesting a short pause in the ongoing up-move. On the weekly chart, the index formed a bullish candle and ended the week with gains of more than 0.5%, indicating that the broader momentum is still intact. Now it has to hold above 26000 zones for an up move towards 26150 then 26277 zones while supports are placed at 26000 then 25900 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.56% at 26074 levels. Positive setup seen in Indigo, Max Healthcare, GMR Airport, M&M, Asian Paints, Eicher Motors, Bharti Airtel, Indusind Bank and PG Electroplast while weakness in JSW Energy, Hindalco, KPIT Technology, National Aluminium, Hindustan Zinc, Tata Steel, DLF, RVNL, CG Power and Glenmark.

* On option front, Maximum Call OI is at 26200 then 26100 strike while Maximum Put OI is at 26000 then 26100 strike. Call writing is seen at 26100 then 26200 strike while Put writing is seen at 26100 then 25700 strike. Option data suggests a broader trading range in between 25600 to 26500 zones while an immediate range between 25900 to 26300 levels.

Global Market Update

* Asian Market - Asian stocks are on course for their worst week since April, as technology names tracked a plunge in US peers amid a resurgence in concerns over artificial intelligence valuations. Taiwan, Japan and South Korea Index declined up to 3%.

* European Market - European stocks tumbled in a risk-off week, as global financial assets were roiled by concerns about lofty technology valuations and an uncertain US monetary policy outlook. UK, Germany and France Index declined 1% each.

* US Data - Manufacturing PMI and Service PMI.

* Commodity - Oil pushed lower by 2% to below $63/bbl after Ukrainian President Volodymyr Zelenskiy agreed to work on a peace plan, as US sanctions on two Russian oil giants took effect on Friday.

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