Dear Trader…

Markets traded volatile and ended marginally lower, continuing the prevailing consolidation phase. After an initial uptick, the Nifty Future gradually drifted lower through most of the session; however, a bounce in the final hour helped trim some losses. Eventually, the index settled at 25,546.10, down by 0.38%.

While global markets continue to display strength, the recent pause in Nifty reflects caution, as participants await fresh triggers to resume the uptrend. We recommend maintaining a positive bias while focusing on stock selection, especially in sectors showing relative outperformance, with an eye on the risk-to-reward ratio.

Nifty futures opened at 25659 points against the previous close of 25643 and opened at a low of 25480 points. Nifty Future closed with an average movement of 215 points and a decline of around 97 points and 25546 points…!!

On the NSE, the midcap 100 index will decline 0.14% and smallcap 100 index is closing decline 0.41%. Speaking of various sectoral indices, the NSE saw gains in only Metal, Consumer Durables, Healthcare, Auto, Pharma and IT stocks, while all other sectoral indices closed lower.

At the start of intra-day trading, August gold opened at Rs.97242, fell from a high of Rs.97441 points to a low of Rs.97000 with a rise of 149 points, a trend of around Rs.97400 and July Silver opened at Rs.1,05,947, fell from a high of Rs.1,06,314 points to a low of Rs.1,05,250 with a rise of 47 points, a trend of around Rs.1,05,994.

Meanwhile, on the domestic front, a strong start to the monsoon supported sentiments, with cumulative rainfall now 4% above the long-period average, which bodes well for agri, rural and consumer related sector. Defence- stocks are likely to be in focus, as India’s strengthening manufacturing ties with Europe, backed by NATO’s rising defence spend, present a significant export opportunity. The government has set an ambitious target of Rs.50,000 crore in defence exports by 2029.

Overall, we expect the market momentum to continue with Nifty likely to move upwards towards its previous life highs driven by healthy domestic macros and supportive global environment. We maintain a positive outlook on domestic-driven sectors such as financials, capital markets, agriculture-linked segments (including agri inputs, tractors, and rural consumption), and defence, which are well-positioned to benefit from ongoing policy support and seasonal tailwinds.

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