The Indian stock market showed resilience today, with the Nifty50 index closing above the 25,000 mark and the BSE Sensex gaining over 150 points. This came despite the markets trimming gains due to renewed geopolitical tensions between Iran and Israel. Analysts expect Indian equities to continue consolidating as investors closely monitor global developments.
The recent tensions have cast a shadow over the market’s recent streak of gains, prompting cautious trading. While the markets showed strength, experts advise focusing on underlying macroeconomic indicators and long-term growth potential rather than short-term geopolitical events. In a day marked by high volatility, the Sensex closed 158 points higher, despite giving up most of its intra-day gains after escalating tensions.
The benchmark index briefly surged over 1,100 points, crossing the 83,000 mark, before settling at a gain of 158 points. The Nifty also held steady, finishing 0.3% higher above 25,000. Key movers included Adani Ports, which saw a gain of 3%, and Kotak Bank, up by 2%.
Other notable risers were Jio Financial and Grasim. The market’s oscillation was largely attributed to global geopolitical developments, as Israel launched strikes on Iran after a reported breach of an ongoing ceasefire. In sector highlights, oil stocks like BPCL and HPCL rallied up to 5% as crude oil prices slid below $70 per barrel.
ACME Solar shares jumped 3% following the refinancing of a major project in Rajasthan. HG Infra Engineering saw a rise of over 4%. Corporate news included Devyani International shares increasing by 3% after acquiring an additional stake in Biryani by Kilo.
Economic indicators showed gold prices declining by Rs 900 to Rs 98,900 per 10 grams on hopes for an Iran-Israel ceasefire. Indian bonds experienced a rally as traders sought the asset post the ceasefire news.
sensex gains amid high market volatility
Brent crude’s dip to $69 per barrel provided relief to oil-importing nations like India, spurring a rally in the Rupee, which saw its best day in a month, rising 0.9%. In global markets, US Federal Reserve Chairman Jerome Powell indicated a delay in interest rate cuts, influencing trader sentiment. European shares saw a significant uptick, with the STOXX 600 gaining 1.4%.
Japan’s Nikkei closed higher, led by gains in tech stocks like SoftBank and Tokyo Electron. Key announcements included HCLTech partnering with AMD to enhance AI, digital, and cloud solutions, and Bitcoin surging past $105,000, driven by easing Iran-Israel tensions and significant ETF inflows. Several companies, including Amanta Healthcare, Glottis Limited, and GNG Electronics, received SEBI approval for IPOs, reflecting robust capital market activity.
Looking ahead, the Nifty 50 is expected to remain in the range of 24,800–25,100 until it decisively closes on either side, according to market experts. Key resistance levels based on pivot points are 25,040, 25,095, and 25,183. Support levels based on pivot points are 24,863, 24,808, and 24,719.
The Nifty 50 formed a small bullish candle with long upper and lower shadows on the daily charts, indicating volatility and indecision among traders. Despite consolidation, the index remained above short-term moving averages and the midline of the Bollinger Bands, which is considered a positive sign. According to the monthly options data, maximum call open interest is at the 25,000 strike (over 1.05 crore contracts), while maximum put open interest is at the 24,000 strike (around 1.07 crore contracts), providing significant support.
The Nifty Put-Call ratio dropped to 1.04 on June 23, compared to 1.16 in the previous session. The India VIX, which measures market volatility, rose by 2.74 percent to finish at 14.05 levels but stayed below the 15 mark, which is conducive for bullish traders. Many stocks observed significant changes in open interest, suggesting various trading behaviors, including long build-up, long unwinding, short build-up, and short-covering.
Traders should watch these formations and trends to identify potential profitable trades. Staying informed about resistance and support levels, alongside monitoring market sentiment indicators like the Put-Call ratio and volatility index, would be crucial for investors navigating the current market conditions.
