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Market Update

Nifty : 24,542.50 -174.10 (-0.70%)

Sensex : 80,737.51 -636.24 (-0.78%)

• Equity benchmark indices ended lower, with the Sensex tumbling over 600 points and the Nifty closing below its 20-day exponential moving average (20-DEMA), settling at the 24,600 level. The market was weighed down by ongoing concerns over a possible US-China trade conflict and persistent geopolitical tensions involving Russia and Ukraine. Additionally, weak global cues and a decline in China's May Manufacturing PMI—falling to a two-year low below the 50 mark—further dampened investor sentiment. • US index futures and European markets also saw declines after the OECD issued a warning about slowing global economic growth, amplifying fears over the broader impact of the Trump administration’s trade policies. The Nifty dropped 174 points, or 0.7%, to close at 24,543, while the Sensex fell by 636 points, or 0.8%, to end the session at 80,738.

• Sector-wise, Nifty Oil & Gas, IT, and PSU Bank indices declined up to 1%, primarily due to profit booking. On the positive side, the Nifty Realty and Defense indices each rose by 1%. Fertilizer stocks posted strong gains, buoyed by expectations of a favorable monsoon that could boost demand. PSU fertilizer major FACT surged over 17% to close at ?1,046, while RCF and National Fertilizers rose 6% and 8%, respectively.

• Defense stocks advanced amid optimism over increased defense spending due to global geopolitical tensions. Companies like Garden Reach, Cochin Shipyard, Mazagon Dock, and BEML saw gains ranging from 2% to 6%. Realty stocks also performed well, driven by hopes that the RBI may announce an interest rate cut in its upcoming policy meeting on June 6. Shares of Sobha, Brigade, Phoenix Mills, and Prestige Estates rose between 2% and 5%. -636.24 (-0.78%)

Technical Outlook:

• The Nifty Index commenced the session on a positive note, opening at 24780 levels. However, it encountered profit booking during the initial half hour, leading to a decline towards the 24500 zone. Subsequently, the index staged a brief recovery but faced renewed selling pressure near the 24600 mark.

• It ultimately settled with a loss of approximately 180 points, closing below its key support at the 20 DEMA. Now till it holds below 24650 zones it can see more profit booking towards 24400 then 24200 zones while hurdles are seen at 24750 then 24850 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.69% at 24654 levels. Positive setup seen in Hindustan Zinc, JSL, Federal Bank, Prestige Estate, Solar Industries, MCX, AU Bank, Oberoi Reality, Bharat Forge, Tata Chemicals, PNB and Delhivery while weakness in Indian Renewable Energy, BHEL, ICICI PRU life, NHPC, Mankind pharma, Jubilant Food, BPCL, CESC, Voltas and Biocon.

• On option front, Maximum Call OI is at 25000 then 25500 strike while Maximum Put OI is at 24600 then 24500 strike. Call writing is seen at 24600 then 25000 strike while Put writing is seen at 24300 then 24550 strike. Option data suggests a broader trading range in between 24200 to 25100 zones while an immediate range between 24300 to 24800 levels.

Global Market Update

• European Market - European stocks retreated from early gains and extended their decline on Tuesday morning as poor manufacturing data from China weighed on sentiment and Organization for Economic Cooperation and Development (OECD) slashed its global economic forecasts due to Donald Trump’s trade policies. Both UK and France Index decline 0.2% each.

• Asian Market - Asian stocks edged higher as investors looked ahead to a potential conversation between US President Donald Trump and China’s Xi Jinping to dial down the recent flare-up in trade tensions. Hong Kong Index surged 1.5% while China, Taiwan, South Korea and Australia Index gained up to 0.50%.

• US Data - Factory Orders, Durable Goods Order and Jolts Job Opening.

• Commodity - Oil prices rise, exacerbated by rising geopolitical tensions between Russia and Ukraine. Brent crude is up 1% to above $65 a barrel.

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