Morning Action @ 7 AM – Tuesday, July 1st 2025

# To begin with, Gift Nifty and U.S. stock- futures are on the rise indicating Nifty bulls will aim to start the 2nd-half of 2025 on a positive footing.

# Keeping optimism alive and kicking will be reports that the U.S. and Canada have restarted trade talks.

# 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 Nifty has more room to run. Only a break below Nifty 25229 could catch the bulls off-guard.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty : (+46, 25647)
Dow Futures: (+48, 44143)
Nasdaq 100 Futures (+25, 22704)

Nikkei (-437, 40053)
Hang Seng (Closed, 24072)

Dow Jones (+276, 44095)
Nasdaq Composite (+96, 20370)
Bovespa (+1989, 138855).

# MARKET TRENDS:
Global cues: Positive
FII: (-831.50 crores)
DII: (+3497.44 crores)
Sentiment: Positive
Market Breadth: Positive
Technicals: Overbought conditions.
F&O: 25000 - 26000 zone.

India VIX 12.78 (+3.21%)
USD/INR Futures (29th July) 85.89
Nifty PCR (31st July) 1.25
Bank Nifty PCR (31st July) 1.02

# Nifty Outlook: This Tuesday, Nifty could again waver but sentiments should continue to favor Nifty bulls and the big positive theme for Nifty and its stocks still will be: Reduced uncertainty.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 25515):
SUPPORT: 25411/25229
RESISTANCE: 25700/26277
RANGE: 25450-25700
BIAS: Positive
21 DMA: 25003
50 DMA: 24744
200 DMA: 24084

SENSEX (CMP 83606):
SUPPORT: 83253/82700
RESISTANCE: 84100/85978
RANGE: 83400-84100
BIAS: Positive
21 DMA: 82077
50 DMA: 81408
200 DMA: 79298

BANK NIFTY (CMP 57313)
SUPPORT: 56800/56100
RESISTANCE: 57700/58300
RANGE: 57000-58000
BIAS: Positive
21 DMA: 56261
50 DMA: 55593
200 DMA: 52062

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# Wall Street enjoyed a strong session in Monday’s trade as the S&P 500 and the Nasdaq index surpassed their fresh all-time-record-highs.

# The Biggest positive catalyst: Canadian Prime Minister Mark Carney said that Canada would not collect a digital service tax scheduled to take effect Monday, satisfying President Donald Trump's demand and setting the stage for a broader bilateral trade agreement by July 21.

# The other 3-biggest positive catalysts:

1) Growing expectations that the Federal Reserve may cut interest rates sooner than previously anticipated.

2) Optimism over pending trade agreements including a framework agreement with China.

3) Growing number of S&P 500 companies are issuing upbeat earnings guidance for the second quarter, buoyed by easing tariff pressures and reduced geopolitical uncertainty.

# Gold prices ($3313 per ounce) have zoomed higher helped by wear US Dollar.

# WTI crude oil futures have dropped near the $64.75 per barrel.

STOCK MARKET NEWS:

# Overnight, US stocks were seen rising as Trump's tax bill progressed in the Senate.

The S&P 500 and the Nasdaq notched fresh all-time-highs.

# Well, Nifty could struggle to advance until the US-India trade tariff deal is announced.

# Meanwhile, the 3-positive catalysts which shall keep downside limited:

1) India's GST collections hit an all-time high of ₹22.08 lakh crore in 2024-25, a 9.4% growth YoY.

2) Canada caves to digital tax.

3) Fed rate cut bets on the rise.

# Technically speaking, a ‘Bearish Engulfing’ pattern appears on the daily charts. That said, only a break below Nifty 25229 support could catch the bulls off-guard.

# The 2-big trading themes:

1) All eyes will be on the Indian trade team which is in the US to finalise deals before the Jul 9 deadline.

2) Focus will be also on the US NFP to trickle in this Thursday, July 3rd
# Amongst stock specific action:

1) Karnataka Bank (-5.5%) dropped after the bank’s board has accepted the resignation of managing director (MD) & chief executive officer (CEO), Srikrishnan Hari Hara Sarma, effective from 15 July 2025.

2) Alembic Pharmaceuticals surged 7% after the company received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Doxorubicin Hydrochloride Liposome Injection.

3) ITD Cementation India rallied 4.22% after the company secured an international marine contract worth $67.4 million (approximately Rs 580 crore) for jetty construction works related to the Ruwais LNG project in Abu Dhabi.

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

Nifty (25515): Buy on dips between 25400-25450 zone Stop at 25209. Targets 25750/25900. Aggressive targets at 26100-26277.35 zone.

Bank Nifty (57313): Buy between 56800-56900 zone. Stop at 56051. Targets 57700/58000. Aggressive targets at 58300-58500 zone.

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

# The 1 Stock to Buy Now: Buy LIC (CMP 973): Buy at CMP. Stop at 937. Targets 989/1003. Aggressive targets at 1033. (Interweek Strategy). Rationale: Probable higher consolidation rebound on the daily charts. The make-or-break intraday support at 943. Confirmation of strength only above 989 mark.

LotusFunds Super Traders: There is a bright chance that Nifty takes over the positive baton from strong overnight Wall Street cues amid Fed rate cut bets.

Disclaimer/ Disclosure: The investments & trading ideas recommended in the market analysis, research reports, etc. may not be suitable for all investors. This article or data points does not construe investment advice as stock market investments are subject to market risks so please refer to your financial consultant advice before Investing or trading. All information is a point of view, and is for educational, Learning and informational use only. The author or the group admin accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investors must make their own investment decisions based on their specific investment objectives, goals and financial position only after consulting with registered market intermediaries.

Our clients may have positions in the stocks mentioned in this note. Kindly note that our clients may receive additional information in real time not available to the viewers of this note.

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.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments.