MOSt Market Roundup : The Nifty Index opened on a flat note at 24560 and experienced volatility during the initial hour, briefly dipping to an intraday low near 24530 by Motilal Oswal Wealth Management
Market Update
Nifty : 24,620.20 +77.70 (+0.32%)
Sensex : 80,998.25 +260.74 (+0.32%)
* The equity benchmark Sensex surged nearly 300 points, while the Nifty closed above the 24,600 mark, rebounding after three consecutive days of losses amid a global market rally that boosted investor sentiment. The Nifty gained 77 points, or 0.3%, finishing at 24,620, and the Sensex rose 260 points, or 0.3%, to close at 80,998. Gains were led by major stocks such as HDFC Bank, Reliance Industries, Bharti Airtel, and Infosys. Broader markets outperformed, with the Nifty Midcap and Nifty Smallcap 100 indices both rising nearly 1%.
* The positive momentum was supported by a global market rally of 1-2%, fueled by stronger-than-expected U.S. job openings data, which boosted investor confidence despite ongoing concerns over President Donald Trump’s tariff policies. Additional optimism came from hopes of a U.S.-China trade deal, Germany’s announcement to reduce corporate tax rates, a 4 basis-point drop in the U.S. 10-year bond yield to 4.40%, and a stable U.S. Dollar Index holding below the 100 level.
* On the domestic front, expectations that the Reserve Bank of India (RBI) may cut interest rates in its upcoming policy meeting, along with strong domestic manufacturing PMI data, historically low inflation, and forecasts of an above-average monsoon, also positively impacted the market. Rail stocks were the biggest gainers, followed by energy, defense, oil & gas, and metal sectors, all seeing significant rallies. Key rail stocks such as Ircon International, RITES, JWL, SJVN, and RVNL rose between 5-13% amid hopes of securing overseas orders.
* Defense stocks also gained, with BEL up 2% to close at Rs 391 after winning an order worth Rs 537 crore. Other defense companies like GRSE, Zen Technologies, MTR Tech, and Paras Defence saw gains ranging from 1-5%. Meanwhile, the Nifty Realty Index fell 1% due to profit booking.
Technical Outlook:
* The Nifty Index opened on a flat note at 24560 and experienced volatility during the initial hour, briefly dipping to an intraday low near 24530. Thereafter, the index recovered and traded within a narrow range of approximately 120 points for the rest of the session.
* It eventually closed with gains of around 80 points, ending the day near its 20 DEMA. Now it has to cross and hold above 24700 zones for an up move towards 24800 then 25000 zones else weakness could be seen towards 24500 then 24300 zones.
Derivative Outlook:
* Nifty future closed positive with gains of 0.19% at 24721 levels. Positive setup seen in PB Fintech , APL Apollo Tubes, IRFC, PI Industries, SRF, KEI Industries, SBI Cards, Jio Financial services, Samvardhana Motherson, Eternal, Concor and RVNL while weakness in Cholamandalam Finance, Varun Beverages, Axis Bank, Patanjali Foods, Lupin, JSW Steel, Biocon , Voltas, Bajaj FinServ and Titan.
* On option front, Maximum Call OI is at 25000 then 24600 strike while Maximum Put OI is at 24600 then 24500 strike. Call writing is seen at 24600 then 24700 strike while Put writing is seen at 24600 then 24500 strike. Option data suggests a broader trading range in between 24200 to 25100 zones while an immediate range between 24300 to 24900 levels.
Global Market Update
* European Market - European stocks gained for a second day, with German shares boosted by a report that the country’s new government is planning big tax breaks. France Index is up 0.8% while Germany Index rose 1% Germany’s cabinet is set to pass a package of tax breaks for companies worth an estimated €46 billion ($52 billion).
* Asian Market - Asian stocks gained, led by South Korea as investors cheered the presidential election victory of Lee Jae-myung, which is seen potentially driving another leg up for the market. Hong Kong, China, Taiwan, and Australia Index gained up to 1%.
* US Data - Mortgage Application, Service PMI and Composite PMI.
* Commodity - Oil prices are broadly stable at $65/bbl in early trade as investors weigh rising OPEC+ output and the threat of wildfires in Canada's energy hub.
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