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• Equity benchmark indices extended their recovery for the second consecutive session, with the Sensex and Nifty gaining nearly 1% each, supported by bargain hunting at lower levels following the sharp correction witnessed in recent sessions. Market sentiment was further boosted by the decline in crude oil prices below $100 per barrel, record-high closing levels in US equities, strong gains across Asian and European markets, and encouraging quarterly business updates from domestic companies. Brent crude declined more than 3% from its recent highs to below $100 per barrel following Saudi Arabia’s decision to cut official selling prices and restore oil supplies from the Gulf region closer to prewar levels. The Sensex gained 685 points, or 0.7%, to close at 73,067, while the Nifty 50 advanced nearly 220 points, or 1%, to 22,776. Broader markets also extended their gains, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising more than 1% each. The Nifty 500 advance-decline ratio stood at 3:1, indicating broad-based buying interest across the market. Chemical, defence, pharma, and energy stocks were among the major gainers, while Trent surged 12% to close at Rs2,906 after reporting an impressive Q2 business update.

• Global markets also remained firmly positive, with both Asian and European indices gaining around 1%, supported by the overnight rally in US technology stocks and the decline in crude oil prices below $99 per barrel, which further improved investor sentiment.

Technical Outlook:

• Nifty index opened positive and remained in a sideways to positive trend throughout the session and moved up by more than 200 points. The index closed near its upper band and has started to make higher highs – higher lows from the last two sessions. It formed a bullish candle on the daily frame indicating support based buying at lower levels. Now it has to hold above 22700 zones for an upside move towards 22900 then 23000 zones while support can be seen at 22600 then 22500 zones.

• S&P BSE Sensex index opened on a positive note and witnessed sustained buying interest throughout the session. Bulls remained in full control as the index gradually moved higher in a slow and steady manner from 72400 to 73000 zones. It formed a bullish candle on the daily frame and has started to form higher highs - higher lows from the last two sessions indicating that the overall sentiment is gradually shifting to bullish. Now it has to hold above 73000 zones for an up move towards 73300 then 73500 zones while supports are shifting higher to 72700 and then 72500 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.79% at 22799 levels. Positive setup seen in Trent, Bhel, MCX, Radico, Laurus Lab, Divis Lab, Siemens, CG Power, HAL and Sona Coms while weakness seen in Phoenix Mills, Bandhan Bank, TechM, Federal Bank, Max Health, KEI, ITC, IEX, Jindal Steel, Ultratech Cement, Apollo Hospital, TCS, TVS Motor and Bajaj Finance.

• On option front, Maximum Call OI is at 23500 then 22700 strike while Maximum Put OI is at 22000 then 22600 strike. Call writing is seen at 23500 then 22700 strike while Put writing is seen at 22600 then 22700 strike. Option data suggests a broader trading range in between 22300 to 23300 zones while an immediate range between 22500 to 23000 levels.

• Reliance Ambani’s Jio Said to Seek About $114 Billion Valuation in IPO – Jio Platforms Ltd. is likely to seek a valuation of about Rs11 trillion ($114 billion) in its planned initial public offering, according to people familiar with the matter, falling short of earlier expectations for what may still be the country’s largest-ever listing.

• HAL to add second Shakti engine line as India boosts aero-engine capacity – Company is all set to establish a second production line for the Shakti engine at its Koraput facility in Odisha, moves to expand domestic propulsion capacity alongside a sharp increase in orders for indigenous military helicopters.

• Honasa Sees Early Double-Digit Operating Margin Profile in 2Q – Company expects net sales value growth in the early thirties for the July-September quarter. Mamaearth, Honasa's largest brand, is expected to deliver high-teens NSV growth y/y. Younger brands, including The Derma Co. and Aqualogica, are seen growing around mid-forties NSV y/y. Offline channels lead growth, with general trade and modern trade both expected to post “strong” gains.

• Transrail Lighting – Company has secured new orders worth Rs 412 crore in its core Transmission & Distribution (T&D) business.

• Lupin – Company announced the launch of Formoflo-G MDI, a fixed-dose triple combination metered-dose inhaler (MDI) for the management of chronic obstructive pulmonary disease (COPD) in India.

• Amber Enterprises Incorporates New Subsidiary For Mobile Phone Manufacturing – Company has incorporated a new wholly owned subsidiary, Amber Digital Technologies, in India. The newly incorporated entity will focus on the manufacturing of mobile phones.

• HSBC India Services PMI rose to 55.2 in September, up from 54.1 in August, indicating stronger expansion in the services sector. Composite PMI, which combines manufacturing and services activity, increased to 55.9 in September from 54.3 in the previous month.

• World Bank raises India FY27 growth forecast to 7.1%, flags oil, El Niño risks – The World Bank raised its forecast for India's economic growth in fiscal 2026-27 to 7.1% from 6.6%, saying resilient domestic consumption had helped the economy absorb the impact of higher energy prices even as inflationary pressures persisted.

Global Market Update

• Asian Market – Asian stocks rose as the rally in US tech shares helped gains in the overall market and falling oil price to below $99/bbl boosted investor sentiment. Japan, Taiwan and South Korea market gained up to 2%.

• European Market – European stocks advanced as bonds yield falling and weaker oil prices helped ease worries over inflation. UK, Germany and France Index advance up to 1%.

• Commodity – Brent Oil prices slipped 1% to below $100/bbl as rising Persian Gulf exports and a price cut by Saudi Arabia pointed to a looser market.

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