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Market Update

Nifty : 25,202.35 -124.70 (-0.49%)

Sensex : 82,159.97 -466.26 (-0.56%)

* Equity benchmark Nifty slipped below the 25,300 mark while Sensex tumbled nearly 500 points, dragged down mainly by IT stocks after the U.S. announced a steep hike in the one-time H-1B visa fee to $100,000 (?88 lakh). The development rattled investor sentiment in a sector that was only beginning to recover. Heavyweights Reliance Industries and HDFC Bank also weighed on the indices.

* Concerns over progress in the US-India trade deal, coupled with sustained FII selling, overshadowed the positive impact of the rollout of GST 2.0 reforms. Globally, market sentiment stayed cautious amid ongoing trade tensions, while the Bank of China left its one-year and five-year lending rates unchanged.

* The Sensex dropped 466 points, or 0.50%, to settle at 82,159, and the Nifty declined 124 points, or 0.5%, to close at 25,202. Tech stocks were the hardest hit, as President Donald Trump’s executive order hiking H-1B visa costs raised concerns over higher operational expenses for outsourcing firms. The Nifty IT index slumped 3%, with TCS, Infosys, Tech Mahindra, Mphasis, Persistent Systems, Coforge, and Tata Elxsi losing between 2–6%.

* Profit booking also dragged Auto, FMCG, mid-cap, small-cap, and defense indices lower by up to 1%. Meanwhile, Adani Group stocks extended their strong rally after SEBI dismissed key Hindenburg allegations last week. Adani Power hit the 20% upper circuit at Rs.170 with a massive 13.4 crore shares traded on the NSE, while Adani Total Gas soared over 19%. Adani Energy Solutions, Adani Green, and Adani Enterprises also advanced 4–12%.

Technical Outlook:

* Nifty index opened negative and attempted recovery in the first hour and saw a bounce till 25330 zones but failed to hold it for the rest of the day and dripped towards 25150 marks. The index reflects a cautious approach after the recent gains which made the upside capped.

* It formed a small bodied candle on the daily frame and closed with losses of nearly 120 points. It closed near its lower band of the day and started to form lower high - lower lows on daily scale but major trend is still intact to positive. Now it has to hold above 25200 zones for an up move towards 25350 then 25500 zones while a hold below the same could see weakness towards 25100 then 25000 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.53% at 25276 levels. Positive setup seen in Adani Green Energy, Adani Energy solution, HUDCO, Adani Enterprise, NBCC , Muthoot Finance, Naukri, Manappuram Finance, Ambuja Cement and Polycab while weakness in Coforge, Mphasis, KFIN Tech, Cyient, Tata Technologies, Voltas, Titan, Trent, TCS, MGL and BSE.

* On option front, Maximum Call OI is at 25300 then 25500 strike while Maximum Put OI is at 25200 then 25000 strike. Call writing is seen at 25300 then 25250 strike while Put writing is seen at 25200 then 25150 strike. Option data suggests a broader trading range in between 24700 to 25700 zones while an immediate range between 25000 to 25400 levels.

Global Market Update

* European Market - European stocks were subdued on Monday as investors looked for fresh clues on economic growth. Porsche AG and parent Volkswagen AG drop after an outlook cut. Germany Index declined by 0.5% while France Index is trading flat to negative.

* Asian Market - Asian shares rose following a Wall Street rally, with Japanese equities advancing after concerns about the Bank of Japan’s plan to offload its massive exchange-traded fund holdings eased. Japan Index rose 1%. China Index gained 0.3% after Bank of China kept unchanged 1-year and 5-year prime lending rate.

* US Data - Chicago Fed Nat Activity Index.

* Commodity - Crude oil prices rose on Monday amid geopolitical developments in Europe and the Middle East, highlighting ongoing risks to European energy security. Brent crude at last look gained 0.2% to US$66.83/barrel.

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