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Market Update

Nifty : 24,967.75 +97.65 (+0.39%)

Sensex : 81,635.91 +329.06 (+0.40%)

* Equity benchmarks Sensex and Nifty advanced nearly half a percent, supported by gains in IT, real estate, metal, and pharma stocks, as market sentiment improved after U.S. Federal Reserve Chair Jerome Powell signaled a possible rate cut next month. Adding to the positive mood, the government announced GST reforms, while Fitch affirmed India’s rating citing strong growth and healthy external finances, with GST reforms expected to boost consumption.

* The Sensex rose 329 points, or 0.40%, to close at 81,635, while the Nifty gained 975 points, or 0.40%, to end at 24,967. Globally, U.S. markets rallied 2% on Friday, and Asian markets rose up to 1%, after Powell’s dovish remarks fueled optimism of a rate cut in September.

* IT stocks were the top performers, driven by expectations of a 25 bps Fed rate cut next month, with the Nifty IT index climbing over 2% as Infosys, TCS, HCL Tech, Mphasis, and Wipro gained 2–4%. Paper stocks also rallied sharply after the government imposed a Minimum Import Price on Virgin Multi-layer Paper Board to protect domestic players from low-cost Indonesian imports, following a DGTR probe confirming dumping. JK Paper, West Coast Paper, and Emami Paper surged up to 20%.

* The Nifty Realty index added nearly 1% on hopes that a lower GST rate on construction materials will benefit the sector. Stocks like Sobha, DLF, Oberoi Realty, and Raymond advanced 1–2%.

Technical Outlook:

* Nifty index opened positive near 24950 zones and after the dip in the initial hour, it took support from 24900 zones and witnessed a comeback of the bulls using this zone as a technical floor for multiple rebounds. It attempted and crossed the psychological 25k marks. Options data reinforced the range bound theme indicating that market participants anticipate limited movement until a clear decisive breakout.

* It formed a bullish candle with long shadows on either side. Now it has to cross and hold above 25000 zones for an up move towards 25150 then 25250 zones while supports have shifted lower to 24700 then 24600 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.38% at 24992 levels. Positive setup seen in Zydus Lifesciences, Infy, TCS, Jindal Stainless, Mphasis, Nykaa, Hindalco, LTI Mindtree, Exide Industries and Dixon Tech while weakness in Angel one, CDSL, Suzlon, Petronet LNG, CAMS, CESC, NHPC, United Spirits, BSE and BEL.

* On option front, Maximum Call OI is at 25000 then 25100 strike while Maximum Put OI is at 25000 then 24900 strike. Call writing is seen at 25000 then 25050 strike while Put writing is seen at 25000 then 24950 strike. Option data suggests a broader trading range in between 24500 to 25500 zones while an immediate range between 24700 to 25200 levels

Global Market Update

* European Market - European stocks decline from intra-day high as some of the euphoria around expectations of Federal Reserve interest rate cuts eased, with concerns about tariffs and their impact on inflation and corporate profits back in focus.

* Asian Market - Asian stocks rose, as a dovish pivot by Federal Reserve Chair Jerome Powell fueled investor optimism that the Fed will lower interest rates next month. Most major equity indexes were in the green, with Taiwan, South Korea and Hong Kong leading the gains in the region.

* US Data - New Home Sales.

* Commodity - Brent Crude gained 1% to above $67/bbl after the news that the Ukraine launched a drone attack on Russia on Sunday, forcing a sharp fall in the capacity of a reactor at one of Russia’s biggest nuclear power plants. The attack sparked a huge blaze at the Ust-Luga fuel export terminal.

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