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• Equity benchmark Nifty ended marginally lower, weighed down by escalating geopolitical tensions and a sharp rise in crude oil prices to nearly $90 per barrel. Market sentiment also remained cautious ahead of the release of key inflation data from both the US and India. Globally, European and Asian markets traded mixed ahead of the release of the US July inflation data, while oil prices advanced amid continued uncertainty over when the conflict with Iran would ease enough to ensure the smooth flow of crude supplies.

• The Nifty declined 35 points, or 0.2%, to close at 24,435. The Nifty IT Index declined 2%, led by TCS, which fell nearly 4%. Other Tata Group stocks also came under pressure after N. Chandrasekaran decided not to seek reappointment as Tata Sons Chairman ahead of the AGM scheduled for August 18.

• However, PSU banking stocks emerged as the biggest gainers, with the Nifty PSU Bank Index advancing 2% after Canara Bank and Bank of Baroda raised their lending rates. PNB, Bank of Maharashtra, Indian Bank, Canara Bank and Union Bank gained up to 4%.

• The Nifty Defence Index gained 1%, supported by strong Q1 results from defence major HAL. Metal stocks also remained firm amid reports of alumina production cuts at Alunorte due to disruptions in natural gas supplies. National Aluminium surged 7% to close at Rs 420, while Hindustan Copper gained 2% to close at Rs 499.50.

Technical Outlook:

• Nifty index opened on a flattish note and broke below the crucial 24350 levels in the first hour and remained in a sideways to negative trend. It witnessed an upside spurt in the last hour and managed to close near 24440. It formed a bearish candle on the daily frame with longer lower shadow indicating support based buying is present despite the overall pressure. Now if it crosses and holds above 24450 zones then upside could be seen towards 24550 then 24700 zones while support can be seen at 24300 then 24200 zones.

• S&P BSE Sensex index opened on a flattish note and remained in a bearish trend in the first half of the session breaking below 78000 levels. Recovery was seen in the second half as bulls pushed the index towards 78000 amidst volatile swings in the last hour. It formed a bearish candle on the daily frame and has been making lower highs – lower lows from the last four sessions. Now if it crosses and holds above 78000 zones then upside could be seen towards 78200 then 78500 zones while support can be seen at 77700 then 77400 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.24% at 24481 levels. Positive setup seen in National Aluminium, Force Motors, BHEL, PNB, Union Bank, Hyundai Motor, HAL, Exide Industries, ABB, KEI Industries, AU Small Bank and Zydus Life while weakness seen in Godrej Consumer, PI Industries, Max Healthcare, TCS, Fortis Healthcare, Adani Green Energy, Vishal Mega Mart, Tata Steel, Tata Consumer and Godrej Properties.

• On option front, Maximum Call OI is at 24500 then 24600 strike while Maximum Put OI is at 24300 then 24400 strike. Call writing is seen at 24500 then 24600 strike while Put writing is seen at 24300 then 24400 strike. Option data suggests a broader trading range in between 24200 to 24800 zones while an immediate range between 24300 to 24600 levels.

• JSW Energy Signs JV for 920 MW Bhutan Hydro Project – Company has signed a pact with Druk Green Power Corp. for joint development of the 920 MW Punatsangchhu-III Hydroelectric Project in Bhutan, Druk Green Power will hold 51% and JSW Neo Energy will hold the remainder.

• Redington – NewJaisa Technologies enters into Distribution Partnership with Redington Limited to Expand Availability of Refurbished Computing Products Across India.

• Canara Bank, Bank of Baroda increase lending rates – Bank of Baroda and Canara Bank have increased their Marginal Cost of Funds Based Lending Rates (MCLR) by up to 10 basis points (bps) on select tenures.

• Bansali Engineering – Company announce stock split each share into five.

• Grasim – Company announce Rs3157cr capex across standalone.

Global Market Update

• European Market – Shares were in Europe ahead of the release of key U.S. inflation data for July, while oil prices advanced as doubts persisted over when the war with Iran will allow crude to flow freely again..

• Asian Market – Asian stocks climbed, driven by gains in chipmakers, as earnings from US technology companies bolstered sentiment toward the region’s AI infrastructure firms.

• US Data – CPI.

• Commodity – Oil price is trading flat at $88/bbl. Iran has rejected U.S. President Donald Trump's comment that since Iran is seeking compensation as part of any talks on ending the war, he would demand.

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