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• Equity benchmark Nifty declined more than 0.5% to close below the 24,100 mark as escalating geopolitical tensions between the U.S. and Iran, weakness in global equity markets, a sharp rise in crude oil prices, and higher-than-expected domestic inflation weighed on investor sentiment. Brent crude surged to a one-month high above $85 per barrel, while India's June CPI inflation accelerated to an 18-month high of 4.38%, breaching the Reserve Bank of India's (RBI) medium-term target of 4%, raising concerns over the interest rate outlook.

• Global markets remained under pressure after reports that U.S. President Donald Trump is considering imposing a 20% shipping fee on vessels transiting the Strait of Hormuz, heightening concerns over supply chain disruptions and escalating Middle East tensions. Overnight, U.S. equity indices declined by as much as 1.5%, European markets opened weak, while Asian markets traded mixed. Meanwhile, the U.S. Dollar Index climbed to a one-month high and the two-year U.S. Treasury yield rose to a one-year high, reflecting growing expectations that the U.S. Federal Reserve could raise interest rates later this year. Investors also remained cautious ahead of the release of the U.S. inflation data due later today.

• Back home, the Nifty fell 175 points, or 0.7%, to close at 24,035. Selling pressure was broad-based, with the Nifty 500 advance-decline ratio at 1:3, indicating widespread profit booking in mid-cap and small-cap stocks. The previous session's outperformer, the IT sector, witnessed profit-taking, with the Nifty IT Index declining 1%. The Nifty Realty and Auto indices also fell by as much as 2%. However, defensive buying emerged in pharmaceutical stocks, with the Nifty Pharma Index gaining around 1%, led by Biocon, Divi's Laboratories, JB Chemicals & Pharmaceuticals, and Sun Pharma.

Technical Outlook:

• Nifty index opened with a gap down of around 140 points and attempted to sustain above 24150 zones in the first half of the session, but bears took control and dragged the index lower in the second half without any meaningful recovery. It formed a doji sort of a candle and an inside bar on the daily frame indicating rejection at higher levels but support based buying intact at 24k levels. Now if it holds below 24000 zones, weakness could be seen towards 23900 then 23800 levels while on the upside hurdles can be seen at 24150 then 24250 zones.

• S&P BSE Sensex index opened with a gap down of around 340 points and traded in a range with volatile swings for most part of the session. It managed to hold its support zones of 77000 but follow up buying was still missing at higher levels and it now requires a decisive close above the hurdle zones for the next leg of up move. It formed a small bodied candle with wicks on either sides indicating a clear tussle of bulls and bears. Now if it holds below 77000 zones, weakness could be seen towards 76500 then 76200 zones while hurdles have shifted lower to 77500 then 77800 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.91% at 24022 levels. Positive setup seen in Concor, Biocon, Kalyan, Divis Lab, Bharti Airtel, Bluestar, Sun Pharma, Apollo Hospital, Nuvama and Voltas while weakness seen in Tata Elxsi, HDFC Life, Canara Bank, BDL, Swiggy, TMPV, Sammaan Cap, JioFin, Bank Of India and DMart.

• On option front, Maximum Call OI is at 24100 then 25000 strike while Maximum Put OI is at 24000 then 23000 strike. Call writing is seen at 24100 then 25000 strike while Put writing is seen at 23300 then 24100 strike. Option data suggests a broader trading range in between 23600 to 24600 zones while an immediate range between 23800 to 24300 levels.

• Govt & LIC to sell 60.7% stake in IDBI Bank; revised bids under evaluation, deal likely within a month - Govt & LIC to sell 60.7% stake in IDBI Bank; revised bids under evaluation, deal likely within a month – media report.

• OneSource Specialty Pharma – Company has entered a manufacturing agreement with Formycon AG, under which OneSource will provide integrated Drug Substance and Drug Product biologics manufacturing from its Bangalore facility.

• NBCC – Company won order worth Rs501cr.

• Sigma Advanced Systems – Company has acquired the UK-based Bromford Precision Solutions Ltd for Rs 153 crore. The acquisition marks a “significant milestone” in Sigma's international growth strategy, strengthening its position within the Rolls-Royce supply chain while complementing its UK division.

• Container Corp – Company announce physical volumes handled in the June quarter rose 8.89% compared with the previous year. The company handled cargo volumes of 1.4 million 20-foot- equivalent units in the June quarter vs 1.29 million YoY.

• Wholesale Price Index (WPI), accelerated to 9.87% in June. This was up from 9.68% in May, driven by a steep spike in food costs, petroleum products, and manufactured goods

Global Market Update

• European Market - European stocks fell on Tuesday as increasing tensions between the US and Iran sent oil prices higher, while Ericsson AB slumped 10% after warning about margin pressure. UK, Germany and France Index declined 0.5%.

• Asian Market - Asian shares were mixed as markets in Japan, China and South Korea Index rebounded from early losses led by semiconductor stocks. China Index gained over 1% while Taiwan Index dropped 1.4%. The government reported that China's exports jumped 27% in June from a year earlier as adoption of artificial intelligence drove strong demand for computer chips and other technology.

• US Data - CPI data.

• Commodity - Brent crude climbed 4% above $85 a barrel for the first time in a month after President Trump said the U.S. would reimpose a naval blockade on Iran and charge a 20% fee on all cargo shipping through the Strait of Hormuz in exchange for protecting the waterway.

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