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Below the Quote on Market Wrap Up 03 June 2025 by Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd

"Markets edged lower in a volatile trading session, losing over half a percent amid weak cues. After an initial uptick, the Nifty oscillated sharply in early trade; however, a sharp decline below the short-term moving average (20 DEMA) in the latter half of the session kept the tone negative. Eventually, it closed near the day’s low at the 24,539 level. On the sectoral front, most key sectors ended in the red, with energy, financials, and IT among the top losers. The broader indices showed a mixed trend — the smallcap index closed almost flat, while the midcap index lost nearly half a percent.

The ongoing foreign fund outflows, coupled with weak global cues such as geopolitical tensions and uncertainty over trade deals, are adding pressure to the markets. Notably, the Nifty has decisively breached its short-term support zone (20 DEMA) for the first time in nearly one and a half months, which may lead to further downside toward the 24,200–24,400 zone. However, the relatively stronger performance in the banking space could help limit the pace of decline. We recommend maintaining caution in stock selection and trade management in the current environment."

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