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Market Update

Nifty :24,868.60 +95.45 (+0.39%)

Sensex : 81,101.32 +314.02 (+0.39%)

* Equity benchmarks ended higher on Monday, with the Sensex climbing over 300 points and the Nifty closing just below the 24,900 mark, led by a strong rebound in IT stocks. Sentiment improved after Infosys announced it would consider a share buyback, triggering broad-based gains in the IT pack. Global cues were also supportive, as hopes of a US Fed rate cut in next week’s policy meeting lifted risk appetite. The US 10-year bond yield and Dollar Index slipped to five-month lows at 4% and 97, respectively, strengthening the case for policy easing.

* The Sensex rose 314 points (0.4%) to settle at 81,101, while the Nifty advanced 95 points (0.4%) to finish at 24,868. The Nifty IT index jumped nearly 3%, with Infosys surging 5% to ?1,504, while Tech Mahindra, Wipro, HCL Tech, TCS, Mphasis, and Coforge gained 1–3%. Select capital goods names like Cummins India, ABB, and Siemens also saw fresh buying interest. However, Realty and Auto indices slipped up to 0.5% on profit booking. Nifty Pharma gained 1% lead by Dr Reddy, Zydus Lifesciences, Glenmark Pharma and Gland Pharma.

* Globally, Asian and European markets edged higher as investors looked ahead to key US inflation data due later this week, which could influence the Fed’s next move.

Technical Outlook:

* Nifty index opened gap up by around 100 points and after the initial slip it started recovering but remained very choppy in a range of 80 points. It maintained a bullish undertone but attempts to break above the crucial 24900 resistance were met with supply exhaustion, leading to consolidation near the upper band of the day.

* It finally closed with gains of around 100 points and formed a small bodied candle on daily frame. It has started shifting its base higher from the last seven sessions. Now it has hold above 24800 zones for an up move towards 25000 then 25150 zones while supports can be seen at 24750 and 24600 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.27% at 24961 levels. Positive setup seen in Titagarh Rail, Amber Enterprise, Glenmark, Dr. Reddy, Mphasis, Adani Ports, Zydus Life, IDFC First Bank, Phoenix Mills and Muthoot Finance while weakness in Supreme Industries, Trent, HFCL, IGL, Torrent Power, Kalyan Jewellers, BDL, Jio Financial and Syngene.

* On option front, Maximum Call OI is at 25000 then 24900 strike while Maximum Put OI is at 24800 then 24500 strike. Call writing is seen at 24900 then 25000 strike while Put writing is seen at 24800 then 24900 strike. Option data suggests a broader trading range in between 24300 to 25300 zones while an immediate range between 24600 to 25100 levels.

* Jio Financial Executes Pact With Allianz Europe - Company has executed joint venture pact with Allianz Europe to form domestic reinsurance joint venture company. It has incorporated JV Allianz Jio Reinsurance for Reinsurance Business in India.

* TCS - Company is in pact with CEA to advance physical AI research and innovation in France. It is in pact with CEA to develop intelligent Robotics Solutions across Industrial Sectors.

* Alembic Pharma - Company received US Federal Drug Administration's AND approval for phytonadione injectable emulsion. Phytonadione is used in treating vitamin k deficiency.

* Waaree Renewable received the letter of award worth Rs 1,252 crore for solar power project. The project is for engineering, procurement, and construction for 870 megawatt alternating current and 1,218 megawatt peak grid connected ground mount solar power project.

* Railtel Corp received order worth Rs 18.6 crore from Indian Railway Catering and Tourism Corp for comprehensive cyber security intelligence services.

Global Market Update

* European Market - European stocks rose as investors looked for the next step in France’s struggle to repair its deteriorating finances after political deadlock toppled a second prime minister in less than a year. France Index gain 0.7% as French President Emmanuel Macron moved to appoint a new premier within days.

* Asian Market - Asian shares traded mixed Tuesday as eyes turned to U.S. data reports set for release later in the week that are likely to impact whether the Federal Reserve cuts interest rates at its next meeting. Japan's benchmark Nikkei 225 erased earlier gains to finish 0.5% lower as political uncertainty continued after Prime Minister Shigeru Ishiba said over the weekend that he planned to step down.

*US Data - Consumer Credit.

* Commodity - Crude oil prices rose 1% to $67/bbl , lifted by prospects of tighter Western sanctions on Russian energy exports and OPEC+'s overall modest output increase for October.

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