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Market Update

Nifty : 24,619.35 +131.95 (+0.54%)

Sensex : 80,539.91 +304.32 (+0.38%)

* Equity benchmark Sensex jumped over 300 points and Nifty reclaimed the 24,600 mark, supported by improved market sentiment after domestic July inflation eased to an 8- year low of 1.55% from 2.1% in the previous month—well below the RBI’s 3.1% forecast—fueling expectations of a rate cut by the central bank.

* Globally, US markets surged over 1% overnight to fresh record highs after July inflation data came in softer than expected, boosting hopes of a US Fed rate cut. This optimism lifted Asian and European markets by 1–2% today.

* The Sensex closed 0.38% higher, up 304 points at 80,565, while the NSE Nifty rose 0.54% or 132 points to end at 24,619. Sector-wise, Nifty defense, pharma, metal, and auto indices gained between 1–3%, with defense stocks rallying after strong quarterly results from BDL, GRSE, and HAL. Nykaa surged 5.1% after reporting a twofold jump in profit, and Paytm climbed 3.1% following in-principle RBI approval for its payments arm to operate as an online payments aggregator. Broader markets also advanced, with the smallcap index up 0.7% and the mid-cap index gaining 0.6%.

Technical Outlook:

* Nifty index opened positive and moved in a range bound manner in the first half of the session. It respected its support of 24500 levels and witnessed buying on the second half of the day. It managed to cross 24650 zones but failed to surpass its previous day’s high.

* It formed a small bodied bullish candle and an inside bar on the daily frame and closed with gains of around 130 points. Now it has to hold above 24500 zones then up move can be seen towards 24750 then 24900 zones while supports can be seen at 24442 then 24350 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.67% at 24719 levels. Positive setup seen in Apollo Hospital, Hindalco, Alkem, Zydus Life, Uno Minda, Indigo, Laurus Labs, Indian Hotel, M&M, and Supreme Industries while weakness in Oil India, SJVN, LICI, Inox Wind, PI Industries, Petronet, Colpal, Kalyan Jewellers, IndusInd Bank and Adani Ports.

* On option front, Maximum Call OI is at 24700 then 24800 strike while Maximum Put OI is at 24600 then 24500 strike. Call writing is seen at 24700 then 24650 strike while Put writing is seen at 24600 then 24500 strike. Option data suggests a broader trading range in between 24100 to 25100 zones while an immediate range between 24400 to 24800 levels.

Global Market Update

* European Market - European stocks advanced, tracking US peers which closed at a record, as easing concerns about price pressures boosted bets on a Federal Reserve interest-rate cut in September. Both Germany and France Index advance 0.2% each.

* Asian Market - Asian equities advanced, with Hong and Japan helping to lead the charge, as bets on Federal Reserve rate cuts fueled investor appetite for risk assets. Hong Kong Index surged 2.6% after US President Trump has extended the trade truce with China by 90 days.

* US Data - Producer Price Index (PPI) and Mortgage Application.

* Commodity - Crude oil prices decline 1% to below $66/bbl following the news that the U.S. will delay the imposition of tariffs on China by 90 days as negotiations continue and investors looking to talks between the US and Russian leaders on Friday for fresh impetus.

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