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Market Update

Nifty : 24,853.40 -93.10 (-0.37%)

Sensex : 81,583.30 -212.85 (-0.26%)

* Equity benchmark indices ended lower as geopolitical tensions between Israel and Iran continued to weigh on market sentiment. The Sensex declined by over 200 points, closing at 81,583, down 212 points or 0.30%, while the Nifty slipped below the 25,900 mark, ending at 25,853 with a loss of 93 points or 0.40%.

* Investor sentiment was dampened by escalating Middle East tensions, rising Brent crude prices above $74 per barrel, persistent foreign institutional investor (FII) outflows, and uncertainty ahead of the U.S. Federal Reserve’s interest rate decision scheduled for June 18. Global cues remained weak, with major Asian, European, and U.S. indices declining after U.S. President Donald Trump dismissed the possibility of an imminent ceasefire in the ongoing Israel-Iran conflict.

* Profit booking was observed across sectors, especially in mid- and small-cap stocks, with the Nifty 500 advance-decline ratio at 1:3. Pharma stocks led the decline following a Bloomberg report stating that President Trump reiterated plans to impose tariffs on pharmaceutical companies. The Nifty Pharma index dropped 2%, with stocks like Lupin, Granules India, Natco Pharma, and Aurobindo Pharma losing over 3% each.

* Other sectors under pressure included metals, auto, real estate, oil & gas, and banking, which fell between 0.5% and 1%. On the positive side, Nifty IT and Nifty Defence indices bucked the trend, each gaining around 0.5%.

Technical Outlook:

* Nifty index opened positive but sharply fell in the initial hour of the day after which it consolidated in a lackluster manner. It managed to hold above 24800 zones but failed to cross the psychological 25k marks. It managed to close above 24850 zones with losses of around 90 points but it has to decisively cross 25000 zones for the next leg of rally to commence.

* It formed a bearish candle on daily frame and has started to make higher highs – higher lows from the last two sessions. Now it has to hold above 24800 zones for an upside move towards 25000 then 25250 zones while supports can be seen at 24700 then 24600 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.55% at 24859 levels. Positive setup can be seen in AB capital, PB fintech, MCX, CAMS, TECHM, IIFL, Infy, OFSS, Coforge and LTIM while weakness in Sonacoms , Lupin, Aurobindo pharma, Sun pharma, INOX wind, Piramal pharma, Syngene, Patanjali, Tata motors and Alkem.

* On option front, Maximum Call OI is at 25000 then 25500 strike while Maximum Put OI is at 24000 then 24800 strike. Call writing is seen at 24900 then 25000 strike while Put writing is seen at 24000 then 24850 strike. Option data suggests a broader trading range in between 24500 to 25250 zones while an immediate range between 24700 to 25100 levels.

Global Market Update

* European Market - European stocks fell after President Donald Trump played down the chance of a ceasefire in the Israel-Iran conflict, pushing oil prices higher. UK, Germany and France Index decline 1% each.

* Asian Market - Asian markets witnessed mixed bag. Japanese stocks held gains, with the Nikkei trading just below its four-month intraday high, after the Bank of Japan said it would slow the pace of its reduction in bond purchases from the start of next fiscal year, largely in line with expectations.

* US Data - Industrial Production and NAHB Housing Price Index.

* Commodity - Oil prices price advance 1% to above $74/bbl as the Israel-Iran conflict fanned fears of crude supply isruptions, lifting oil prices.

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