Index Update: The Nifty 50 rose 0.60% to close at 25,001.15, supported by bullish candlestick patterns and strong volumes, indicating positive sentiment. Trading above its 21-period SMA, the index shows a strong uptrend. A key resistance lies at 25,120.50; a breakout above this level may confirm further upside and reinforce the market’s bullish momentum amid continued investor optimism.

Macro Update: India's Composite PMI rose to a 13-month high of 61.2 in May, driven by strong services growth (61.2) and steady manufacturing activity (58.3). Robust domestic and international demand boosted new orders and employment. Input and output prices rose amid strong passthrough, while business sentiment improved. The data signals resilient private sector momentum despite rising cost pressures and cautious manufacturing confidence.

Top Market Movers: On Monday, Bajaj Auto Limited (NSE: BAJAJ-AUTO) led the gainers with a 2.49% increase, closing at INR 8,958.50 followed by JSW Steel Ltd (NSE: JSWSTEEL) up 2.36% at INR 1,032.30, and Mahindra and Mahindra Ltd (NSE: M&M) which rose 0.49% to INR 3,080.30. On the downside, Eternal Ltd (NSE: ETERNAL) saw the largest drop, falling 4.53% to INR 226.80 followed Kotak Mahindra Bank Ltd (NSE: KOTAKBANK) down 0.55% to INR 2,089.30 and UltraTech Cement Ltd (NSE: ULTRACEMCO), which dropped 0.49% to INR 11,689.00.

Commodity Update: The euro and U.S. dollar rose against the yen and Swiss franc after Trump extended the EU tariff deadline to July 9, easing tensions. Gold fell 0.55% to $3,375.89, silver rose 0.22% to $33.682, and copper gained 0.82% to $4.8763. Brent crude edged up 0.02% to $64.22 in Asian trading, though gains were limited due to ongoing concerns about a potential OPEC+ production increase in July.

Our Stance: The Nifty bullish momentum, supported by strong technical and improving macro data, signals continued market strength. The rise in Composite PMI reflects resilient private sector demand despite rising costs. However, global uncertainties particularly in commodities and trade policy call for cautious optimism. A breakout above 25,120.50 would confirm upside potential, favoring selective exposure to quality cyclicals.

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