IGI Logo

• Equity benchmark indices staged a strong rally, with the Nifty gaining nearly 1% to close above the 23,800 mark and the Sensex surging nearly 800 points, as investors welcomed reports of a proposed peace agreement between the United States and Iran. The development significantly improved market sentiment after both nations reportedly reached an interim accord that includes the reopening of the Strait of Hormuz and measures to ease geopolitical tensions in the Gulf region.

• Crude oil prices tumbled over 4%, falling to a three-month low below $84 per barrel following the announcement, alleviating concerns over supply disruptions and inflationary pressures. The positive news triggered a broad-based rally across global markets, with major Asian and European indices advancing as much as 5%, while US index futures gained more than 1%. Investors cheered the prospect of lower energy costs, easing inflation, and a potentially less hawkish interest-rate outlook.

• The Nifty climbed 231 points or 0.9% to settle at 23,930, while the Sensex advanced 736 points or 0.9% to close at 76264. Over the past two trading sessions, the Nifty has rallied nearly 3%, driven by aggressive short-covering, improving global risk appetite, and easing geopolitical concerns.

• Investor confidence was further strengthened by softer crude oil prices and a sharp recovery in the rupee, which fueled broad-based buying across sectors. Among the key gainers, the Nifty Auto, Metal, Realty, Midcap, and Smallcap indices rose up to 3%, reflecting strong participation across the broader market.

Technical Outlook:

• Nifty index opened gap up by around 360 points but failed to sustain above the 24K marks and gradually slipped lower throughout the day. Despite the positive start, the index traded within a narrow 150 point range for most of the session. Attempts of recovery faced lack of follow up and the index dropped to 23800 marks. It formed a bearish candle on the daily frame but has been making higher highs – higher lows from the last two sessions. Now it has to hold above 23850 for an up move towards 24050 then 24200 zones while support can be seen at 23700 then 23600 zones.

• S&P BSE Sensex index opened with a gap up of around 1200 points and witnessed buying interest in the first half of the session as it attempted to extend its upward momentum. The index moved higher towards 76800 marks but failed to sustain at elevated levels, which triggered profit booking and dragged the index lower towards 76300 marks. Selling pressure remained visible from the latter part of the first half and persisted throughout the second half of the session as the index consolidated near lower levels for the remainder of the day. It formed a small-bodied bearish candle on the daily chart, indicating profit booking after the recent sharp up move. Now it has to hold above 76000 for an up move towards 76700 then 77000 zones while support can be seen at 76000 then 75700 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 1.03% at 23930 levels. Positive setup seen in Uno Minda, Trent, LTF, Prestige, Nuvama, Shriram Finance, DLF, Phoenix, Nam India and Bharat Forge while weakness seen in Auro Pharma, Vendanta, NTPC, Indus Tower, ONGC, Bajaj Auto, Glenmark, Hindalco and Sail.

• On option front, Maximum Call OI is at 24000 then 23900 strike while Maximum Put OI is at 23900 then 23800 strike. Call writing is seen at 24000 then 23950 strike while Put writing is seen at 23900 then 23800 strike. Option data suggests a broader trading range in between 23400 to 24400 zones while an immediate range between 23600 to 24100 levels.

• Bharti Airtel - Company secured shareholder approval for a share-swap transaction to increase its stake in Airtel Africa, with 99.99% of votes cast in favor of the proposal at an extraordinary general meeting held on June 12. Bharti to Boost Airtel Africa Stake in $2.9 Billion Deal.

• Bajaj Electricals, Wipro, Surya Roshni, Havells India - The Andhra Pradesh government has announced a major push towards sustainable urban infrastructure with the launch of an Integrated Lighting Management System (ILMS)-based Smart Street Lighting Project across all Urban Local Bodies (ULBs).

• Waaree Energies – Company has won an 800MW solar module supply order from a prominent domestic energy solutions provider.

• Bharat Forge – Company has unveiled its innovative MArG series of 155mm 4×4 Mounted Artillery Guns at Eurosatory 2026. This new line offers highly mobile, rapidly deployable, and cost-optimized firepower solutions for modern land forces.

• LTMindtree – Company launched BlueVerse for iRun, an AI-native managed services model aimed at helping enterprises automate IT operations and shift from traditional effortbased service delivery to outcome-driven operations powered by agentic artificial intelligence (AI).

• May Wholesale Prices Rise 9.68% YoY - Estimates 9.55% - Wholesale prices rose more than economists expected in May at 9.68% YoY - (estimate +9.55%) in May. Primary article prices rose 4.99% y/y. Previous month was 8.26%, Fuel, power, lighting prices rose 30.33% y/y, Manufactured product prices rose 7.48% y/y and Wholesale food prices rise 3.6% y/y.

• Mini Diamond India – Company won order worth Rs14cr.

• NSE likely to file draft IPO papers with Sebi next week - The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is set to move a step closer, with the country’s largest stock exchange expected to file its preliminary papers with Sebi next week.

Global Market Update

• European Market - European market gained over 2% as oil retreated after the US and Iran reached an interim agreement to reopen the Strait of Hormuz. UK, Germany and France Index gained up to 2.5%.

• Asian Market – Asian equities rallied while oil fell to a three-month low after the US and Iran reached a deal to reopen the Strait of Hormuz, easing concerns over energy-supply disruptions that have roiled global markets. Japan, Taiwan, South Korea, China and Australia Index gained up to 5%.

• US Data - Industrial Production, Empire Manufacturing.

• Commodity - Oil prices dropped over 4% to 4-month low at below $84/bbl on Monday after the U.S. and Iran reached an interim peace deal, marking the first major step toward ending a nearly four-month conflict that has roiled global energy markets.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH00000041