ACTION FOR THE DAY

Market Setup Strong Global Risk-On: US markets closed higher (S&P +0.54%, Nasdaq +0.56%) on upbeat ISM Manufacturing PMI (52.4). Big Trigger: US–India Trade Deal finalized → Tariff cut from 50% to 18% is structurally positive for India. GIFT Nifty: +1000 pts near 26,210 → Clear gap-up opening likely. Macro Tailwinds: Brent stable at $66.5 Dollar Index softer at 97.5 Rupee strength to continue FII Positioning: Shorts elevated at ~88% → Short-covering risk very high on expiry. Nifty – Expiry View Bias: Bullish with volatility Opening: Gap-up expected; avoid aggressive shorts. Price Action Expectation: Initial spike → mild consolidation → short-covering driven up-move Key Levels Support: 25,980 – 26,020 Immediate Resistance: 26,250 Expiry Stretch Possible: 26,350 – 26,450 (if short covering accelerates) Options Strategy (Intraday / Expiry) Preferred Side: Buy on dips / Bull Call Spreads High Probability Trades: Buy ATM / slightly OTM Calls on pullbacks Avoid naked PE buying unless Nifty decisively breaks below 25,980 Option Data Reading: Call writers vulnerable Momentum favors gamma squeeze higher Sectors & Stocks to Watch Banks & Financials: Beneficiaries of risk-on + FII covering Export-oriented stocks: Positive from trade deal + rupee strength Earnings Focus (Q3):

→ volatility expected post numbers Global Cues Today Bank of Australia Policy Decision: Any dovish tone → further supports risk assets US Bond Yields: Slightly firm, but not a risk-off signal yet Trading Summary Trend: Bullish Strategy: Buy dips, play short covering Risk: Profit booking after expiry spike Avoid: Counter-trend shorts in first half