Dear Trader…

Markets witnessed some respite and edged marginally higher after four consecutive sessions of decline. Following a flat start, the Nifty future attempted a recovery in the early hours, largely driven by buying interest in select heavyweights. However, the upside remained capped near the short-term moving average around the 25,250 level. Eventually, it settled at 25,265.60, up by 0.39%. On the sectoral front, all key sectors ended in the green, with auto, pharma, and realty emerging as the top gainers.

Participants drew comfort from the further easing of CPI inflation, which triggered notable buying in rate-sensitive sectors in hopes of a potential rate cut. However, continued disappointment from the IT space, following HCL Technologies’ results, capped overall momentum. With the hurdle at the short-term moving average (20 DEMA) near 25,250 still intact, we suggest maintaining a cautious stance on the index and adopting a selective approach on the sectoral front.

Nifty futures opened at 25180 points against the previous close of 25167 and opened at a low of 25152 points. Nifty Future closed with an average movement of 153 points and a rise of around 98 points and 25265 points…!!

On the NSE, the midcap 100 index will rise 0.95% and smallcap 100 index is closing rise 0.95%. Speaking of various sectoral indices, Auto, Healthcare, Pharma, Consumer Durables and PSU Bank stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.

At the start of intra-day trading, August gold opened at Rs.97887, fell from a high of Rs.98080 points to a low of Rs.97649 with a decline of 18 points, a trend of around Rs.97757 and September Silver opened at Rs.1,12,153, fell from a high of Rs.1,12,939 points to a low of Rs.1,12,130 with a decline of 495 points, a trend of around Rs.1,12,441.

Meanwhile, Market sentiment is showing signs of improvement, supported by a blend of global and domestic developments. Optimism is growing around the possibility of an interim trade agreement with the US, which could lead to a moderation in tariff-related risks.

Concurrently, domestic inflation has fallen to multi-year lows, strengthening expectations of a further rate cut by the RBI-potentially accelerating future economic growth, which is currently showing signs of improvement.

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