Morning Action @ 7 AM – Wednesday, July 2nd 2025

# Gift Nifty and U.S. stock- futures are on the rise indicating Nifty bulls will aim to build on to its recent gains.

# The trading theme revolves around bullish traders bracing for July 9 Trump’s tariff deadline.

# Hurting sentiments, a bit is Trump-Elon Musk’s escalating feud which are again on the front pages.

# Meanwhile, Wall Street will close early at 1:00 PM ET on Thursday in observance of Independence Day.

# The economic event to watch: Focus now turns to Thursday's 8:30 am Eastern Standard Time release of the June US jobs data.

# Long story short: Our call of the day suggests "Up and to the right" remains the bullish trend for the benchmark Nifty. Only a break below Nifty 25229 could catch the bulls off-guard.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (+21, 25677)
Dow Futures: (+75, 44570)
Nasdaq 100 Futures (+58, 22535)

Nikkei (-465, 39521)
Hang Seng (Closed, 24072)

Dow Jones (+400, 44495)
Nasdaq Composite (-167, 20203)
Bovespa (+694, 139549).

LotusFunds Super Trader: Bullish traders anxiously await July 9 Trump’s tariff deadline.

# MARKET TRENDS:
Global cues: Positive
FII: (-1970.14 crores)
DII: (+771.08 crores)
Sentiment: Positive
Market Breadth: Positive
Technicals: Overbought conditions.
F&O: 25000 - 26000 zone.

India VIX 12.53 (-2.01%)
USD/INR Futures (29th July) 85.63
Nifty PCR (31st July) 1.24
Bank Nifty PCR (31st July) 1.09

# Nifty Outlook: Well, it appears Nifty and the Indian economy seem to be in a decent bullish set-up right now.

And amidst this optimistic backdrop, it looks like there's plenty more upside to go for benchmark Nifty.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 25542):
SUPPORT: 25411/25229
RESISTANCE: 25700/26277
RANGE: 25450-25700
BIAS: Positive
21 DMA: 25043
50 DMA: 24772
200 DMA: 24087

SENSEX (CMP 83697):
SUPPORT: 83253/82700
RESISTANCE: 84100/85978
RANGE: 83400-84100
BIAS: Positive
21 DMA: 82188
50 DMA: 81494
200 DMA: 79307

BANK NIFTY (CMP 57459)
SUPPORT: 56800/56100
RESISTANCE: 57750/58300
RANGE: 57000-58000
BIAS: Positive
21 DMA: 56335
50 DMA: 55636
200 DMA: 52093

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# At Tuesday’s closing bell, the Dow Jones Industrial Average was up 0.9% to 44,494, but the S&P 500 lost 0.1% to 6,198 and the Nasdaq Composite fell 0.8% at 20,202 amidst mild profit booking.

# Overnight, the US senate passed President Trump's tax bill at a budget deficit of $3.3 trillion.

# In the meantime, Federal Reserve Chair Powell struck a cautious tone on potential rate cuts but added that most of the FOMC expects rate cuts this year.

# Gold prices ($3343 per ounce) have zoomed higher helped by wear US Dollar.

# WTI crude oil futures are trading sluggish near the $65.50 per barrel.

STOCK MARKET NEWS:

# The Good News is that the Fed rate cut bets are on the rise.

# Agreed, that investors love a Fed rate cut.

# But the only point of concern is that this time, the Fed rate cuts can come only from weakness, and not due to strength of the American economy.

# The real cause of concern in the US is that inflation is still sticky.

Also, the American economy is plagued by concerns like:
1) Lower GDP rate
2) Rise in Unemployment
3) Low consumer confidence.

So, if this time if the Federal Reserve cuts rate, then investors should proceed with caution.

# All eyes squarely on US reciprocal July 9th tariff deadline

# From here-on, focus will be also on the US NFP to trickle in this Thursday, July 3rd

# Nifty Outlook: Well, it appears Nifty and the Indian economy seem to be in a decent bullish set-up right now.

And amidst this optimistic backdrop, it looks like there's plenty more upside to go for benchmark Nifty.

# Going forwards, only a break below Nifty 25229 could catch the bulls off-guard.

# Until then, Nifty’s technical landscape will continue to be bullish.

# Amongst stock specific action:

1) Gabriel India is locked in upper cicuit after the company's board approved a comprehensive restructuring scheme aimed at transforming the company into a diversified mobility solutions provider.

2) Bajaj Auto (+0.23%) is trading sluggish after reporting total auto sales of 3,60,806 units for June 2025, which is higher by 1% as compared with the figure of 3,58,477 units recorded in June 2024.

# Now, before we get into detail of today’s trading session, here is the preferred trade on Nifty and Bank Nifty:

Nifty (25542): Buy on dips between 25400-25450 zone Stop at 25209. Targets 25750/25900. Aggressive targets at 26100-26277.35 zone.

Bank Nifty (57459): Buy between 56900-57000 zone. Stop at 56051. Targets 57700/58000. Aggressive targets at 58300-58500 zone.

# Our chart of the day is bullish on DIVIS LAB, PEL, LAURUS LAB, and HPCL on any early intraday weakness with an interweek perspective.

# The 1 Stock to Buy Now: Buy PEL (CMP 1169): Buy at CMP. Stop at 1133. Targets 1207/1237. Aggressive targets at 1253. (Interweek Strategy). Enjoyed strong session in yesterday's trade, up 2.15%. Massive rebound play on the daily charts is quite likely from a probable higher consolidation. Key intraday support 1138. Confirmation of strength only above 1207.

LotusFunds Super Trader: Bullish traders anxiously await July 9 Trump’s tariff deadline.

RISK DISCLOSURES ON DERIVATIVES:

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

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