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Market Update

Nifty : 24,826.20 -174.95 (-0.70%) 

Sensex : 81,551.63 -624.82 (-0.76%)

• The equity benchmark Nifty closed below the 25,000 mark, while the Sensex fell over 600 points as investors booked profits in large-cap stocks and focused on selective buying in mid- and small-cap segments. This came amid mixed bag global cues and ongoing uncertainty surrounding global trade negotiations.

• Buying interest shifted toward mid- and small-cap stocks, reflected by a stable advance-decline ratio of 1:1.2 for Nifty 500 stocks, driven by profit-taking in large caps. The Sensex ended the day down 625 points, or 0.80%, at 81,551, while the Nifty 50 dropped 175 points, or 0.70%, to close at 24,826.

• The India VIX index surged 3% to a two-week high above 18, fueled by uncertainty over US-India trade talks.

• Among sector performances, Oil & Gas, IT, and FMCG stocks led the losses, declining up to 1%, whereas mid- and small-cap indices outperformed, with the BSE Midcap and Smallcap indices rising 0.2% each.

• Major laggards in the Nifty included Tata Motors, Ultratech Cement, ITC, Axis Bank, and NTPC. Globally, Asian, European, and US markets gained up to 1% as investors reacted positively to President Donald Trump’s decision to extend the tariff deadline for the European Union. -624.82 (-0.76%)

Technical Outlook:

• Nifty Index opened on a negative note and witnessed highly volatile swings. The session turned into a roller-coaster ride with sharp and fast moves on both sides during the first half. In the latter half, the index gradually drifted lower in a slow and steady manner, eventually closing with losses of around 170 points, near the 24820 mark.

• On the daily chart, Nifty formed a bearish candle with wicks on both ends, indicating selling pressure at higher levels, while buying interest remains intact near the lower zones. Now it has to cross and hold above 24900 zones for an up move towards 25100 then 25200 zones else weakness could be seen towards 24700 then 24600 zones.

Derivative Outlook:

• Nifty future closed neagtive with losses of 0.70% at 24860 levels. Positive setup seen in Supreme Industries, Concor, Jio Financial Services, RBL Bank, PI Industries, Tata Chemicals, IDFC First Bank, IEX, Bandhan Bank, Granules, Inox Wind and Astral while weakness in Ultratech Cement, Naukri, ITC, Indigo, JSW Energy, JSW Steel, Axis Bank, M&M, Tata Motors, Grasim and NTPC.

• On option front, Maximum Call OI is at 25000 then 25500 strike while Maximum Put OI is at 24500 then 25000 strike. Call writing is seen at 24800 then 24900 strike while Put writing is seen at 24400 then 24800 strike. Option data suggests a broader trading range in between 24300 to 25300 zones while an immediate range between 24600 to 25000 levels.

Global Market Update

• European Market - Stocks edged higher, extending the previous session’s gains, as investors welcomed President Donald Trump’s decision to extend a tariff deadline for the European Union. Both Germany and France Index gained 0.5% each.

• Asian Market - Asian equities recovered from lower level tracking Wall Street markets, as investors cheered President Trump's decision to delay European Union tariffs. Japan, Australia and Hong Kong Index gained 0.5%.

• US Data - Consumer Confidence and House Price Purchase Index.

• Commodity - Oil prices is trading flat at $64/bbl. Market is looking ahead to OPEC's meeting on Sunday to review its supply agreement. Investors increasingly expect the cartel to hike output, keeping pressure on oil prices.

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