Although all three major indexes rose slightly today, the overall market rebound was relatively

weak. As of the close of the latest trading day, the Sensex index rose by 114.49 points, or 0.16%,
to close at 73852.94 points; the Nifty index also increased, rising by 34.40 points, or 0.15%, and
finally closed at 22402.40 points. In the banking sector, the BANKNIFTY index performed
relatively well, rising 218.55 points, or 0.46%, to close at 48189.00 points. In terms of industry
sectors, the Miscellaneous industry led the way with an increase of 9.74%, followed by
Recreational Products and Computer Peripherals, which increased by 4.91% and 3.73%
respectively.

1. Technical aspect

The BANKNIFTY index formed a harami structure between yesterday's and today's candle lines. At
the same time, today's trading volume has significantly decreased compared to yesterday. This
shows that although the market still maintains a rebound trend, it lacks clear directional guidance,
investors generally adopt a wait-and-see attitude, and market sentiment appears to be more
cautious. Today's trading range has the highest point at 48246.20 and the lowest point at
48028.70. These two price points provide key reference for tomorrow's market trend.

If the price can effectively break through 48246.20 points within the first 30 minutes after the
opening, it will indicate that the rebound trend has been continued and the market momentum
is still healthy. On the other hand, if the price falls below 48028.70 points, it indicates that the
market will likely drop further and approach the recent key support line of 47894.50. If this
support line is breached, it could signal the end of the market's rebound trend in the short term
and could trigger a larger market correction.
Although the SENSEX and NIFTY indexes successfully broke through yesterday's highs (i.e. selling
levels) during the market rebound, both indexes closed lower than their opening prices, which is
generally regarded in market analysis as a signal that the rebound momentum is weakening. On
the daily chart, although trading volume has increased compared to the previous trading day, the
longer upper shadow line indicates that supply significantly exceeds demand at high prices,
further confirming that market supply pressure is greater.

In addition, today's market failed to maintain its closing high, showing the vulnerability of the
rebound. If tomorrow's trading fails to reach a new high and the price falls below the key level of
22349.45, this will be an important signal that the structural stability of the market's short-term
rebound has significantly declined. At this time, market participants need to pay special attention
to whether the 22269.15 level can effectively provide support to avoid a deeper retracement.

2 news side
1. New regulatory risks faced by fast-moving consumer goods (FMCG) companies in India could
have wide-ranging impacts on the country’s economy. As the Supreme Court expands regulation
of misleading claims in advertising, these companies may need to increase compliance costs and
reevaluate their marketing strategies, especially where celebrities or influencers are used to
promote products. This increased regulatory pressure could lead to higher operating costs while
impacting the company's profitability. Additionally, heightened scrutiny of unethical behavior
may limit the use of certain aggressive marketing strategies, potentially impacting a company's
market share and growth rate. For Indian stocks, the Supreme Court's latest ruling on fast-moving
consumer goods companies may cause investor confidence in the sector to be shaken. In the
short term, this may cause market volatility, especially in the FMCG sector. Investors may be wary
of companies that may face financial burdens due to regulations. However, in the long term, this
strengthening of the regulatory environment may prompt companies to adopt more transparent
and sustainable operating methods, which may be positive for improving the reputation and
investment attractiveness of the entire industry. So while there may be challenges in the short
term, in the long term this change could help the stock market stabilize and mature.

2. The Reserve Bank of India’s target of achieving economic growth of 8% to 10% per annum
over the next decade is aimed at leveraging the country’s huge pool of young labor to drive rapid
economic development. The realization of this growth target relies on the improvement of the
quality of the labor force and the improvement of the education system, especially the
development of the service industry, which will help improve overall productivity and
international competitiveness. However, this rapid growth strategy may face challenges, including
maintaining macroeconomic stability and managing volatility in inflation rates, especially food
inflation, which will require prudent fiscal and monetary policies by governments and central
banks. For the Indian stock market, policies pursuing high economic growth are likely to attract
more domestic and foreign investment, especially in services and high-tech industries. Stock
markets are likely to experience positive moves due to expected high growth and improving
business conditions. However, markets may also exhibit volatility in response to any potential
obstacles to achieving these growth targets, such as structural problems in the labor market,
varying quality of education, or uncertainty in macroeconomic policies. So while the long-term
outlook is promising, investors may need to remain wary of possible risks and volatility.

3. Although India is the fastest growing economy in the world, one of its major challenges is its
failure to create enough jobs for its large young population, which has far-reaching consequences
for the economy. The persistence of unemployment points to a mismatch between education and
the labor market, as well as the fact that the quality of economic growth has not yet reached a
level that can broadly absorb the growing workforce. While growth in areas such as services and
infrastructure has given the economy a boost, job growth in these areas has not been enough to
meet the needs of all job seekers. In addition, high unemployment may dampen consumer
confidence and consumer spending, further limiting the growth of domestic demand. For Indian
stocks, high unemployment and low labor force participation may limit the market's long-term
potential. While markets may find support in the short term from government capital spending
and other stimulus measures, unemployment, if left unresolved in the long term, could lead to
lower consumer spending, affecting corporate earnings and stock price performance. Additionally,
market participants may remain skeptical about the government's effectiveness in stimulating
employment, which could cause investor confidence to fluctuate. Therefore, while favorable
growth forecasts and government spending may provide short-term support, the long-term
performance of the stock market may still be constrained by fundamental economic structural
issues.

4. The Indian economy faces challenges from factors such as extreme weather and geopolitical
tensions, which may lead to higher food prices and thus affect the trajectory of inflation.
However, the Reserve Bank of India (RBI) has demonstrated its commitment to managing
inflation and maintaining macroeconomic stability by maintaining stable policy rates and
emphasizing consistency with the inflation target. Additionally, real gross domestic product (GDP)
growth trended upward due to strong investment demand and upbeat business and consumer
sentiment. This process of “ capital deepening, ” in which capital investment is enhanced
through public investment and productivity improvements, has further boosted economic growth
and enabled India to achieve faster-than-expected economic growth in the recent past. For the
Indian stock market, the stability of the foreign exchange market, sufficient foreign exchange
reserves and the recovery of capital inflows provide the market with a relatively stable
macroeconomic environment. These factors may boost investor confidence, attract more foreign
investment, and support positive stock market performance. However, continued food price
pressures and inflation uncertainty are likely to weigh on consumer spending, affecting share
prices in consumption-driven sectors. Overall, while there are some uncertainties, the Indian
stock market is likely to benefit from solid economic growth and a stable direction in
macroeconomic policies in the medium to long term.