Market Wrap

Indian equity benchmarks witnessed a sharp sell-off on 9 June as weak global cues triggered broad-based risk aversion across markets. After a steep decline in U.S. equities on Friday, benchmark indices opened with a significant gap-down and remained under pressure throughout the session. Although Nifty attempted an intraday recovery, renewed selling in the final hour erased gains and dragged the index lower by nearly 1%, ending just above the 23,100 mark.

The weakness was widespread, with almost all sectoral indices closing in negative territory. Healthcare stocks emerged as the lone pocket of resilience, managing marginal gains as investors shifted toward defensive sectors. Global sentiment remained fragile after technology stocks led losses on Wall Street, prompting sharp declines across Asian markets. Japan’s Nikkei tumbled 3.74%, while South Korea’s Kospi plunged 8.29%, reflecting growing concerns over elevated valuations, technology-sector weakness, and slowing global growth expectations.

Market nervousness was also evident in volatility indicators, with India VIX rising nearly 8% to 17.03. Adding to the uncertainty, investors continued to assess the implications of the highly anticipated SpaceX IPO, expected later this week at an estimated valuation of $1.75 trillion. The upcoming offering has intensified profit-booking in global AI and semiconductor stocks, contributing to risk-off sentiment across equity markets.

From a technical perspective, Nifty managed to hold the crucial 23,000 support level. However, the index has now failed to close above the previous session’s high for nine consecutive trading sessions, highlighting persistent weakness in market structure. The latest close also marks Nifty’s weakest closing zone since early April.

What's Ahead

With the weekly derivatives expiry scheduled tomorrow, market volatility is likely to remain elevated. Investors will closely track global market stability, developments in technology and semiconductor stocks, and sentiment surrounding the upcoming SpaceX IPO.

On the technical front, immediate support for Nifty is placed at 23,000, followed by 22,940. A breach of these levels could trigger further downside pressure. On the upside, resistance is seen at 23,260 and 23,300. A decisive breakout above resistance or breakdown below support could determine the market’s next directional move.

Until clearer signals emerge, traders are likely to maintain a cautious and stock-specific approach while closely monitoring global risk sentiment, institutional flows, and volatility trends.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty ended marginally lower at 23,366.70 after a volatile session, reflecting continued caution among market participants amid concerns over inflation, growth projections, geopolitical tensions, and elevated crude oil prices. Although selective buying in financials, FMCG, and healthcare stocks helped contain losses, weakness in IT and metal counters kept the benchmark under pressure. Technically, the index continues to trade below key resistance zones, while the RSI hovering near the 40 mark indicates weakening momentum and a lack of strong bullish conviction. As long as Nifty sustains above the immediate support zone of 23,145, the broader structure remains stable; however, a breach could expose the index to further downside towards 23,008. On the upside, resistance is seen at 23,588 followed by 23,725, and a decisive move above these levels would be required to revive bullish momentum and signal a stronger recovery.

Bank Nifty

Bank Nifty outperformed the broader market, gaining 0.35% to close at 54,496.25, supported by strength in PSU banks and select private lenders. Despite some profit-booking during the session, the index witnessed renewed buying interest in the latter half, highlighting underlying resilience in the banking space. The RSI is gradually moving toward the 50 level, indicating improving momentum and a potential shift in sentiment. Technically, the index remains well-positioned above its key support levels of 53,846 and 53,444, suggesting that dips may continue to attract buying interest. On the upside, immediate resistance is placed at 55,146, followed by 55,548. A sustained move above these levels could trigger fresh upside momentum, while failure to hold support may lead to range-bound consolidation.

Nifty Financial Services

The Nifty Financial Services Index closed slightly higher at 25,056.80, supported by broad-based gains across NBFCs, housing finance companies, and select banking names. Strength in lenders such as REC, PFC, Bajaj Finance, and Axis Bank helped offset weakness in a few heavyweight financial stocks. The positive market breadth reflects continued sectoral participation and improving investor confidence in financials. Technically, the index remains comfortably above its immediate support levels of 24,673 and 24,432, maintaining a constructive undertone. However, the zone between 25,451 and 25,691 remains a critical hurdle for the bulls. A breakout above this resistance band could pave the way for further gains, while failure to do so may keep the index in a consolidation phase over the near term.

Sensex

The Sensex closed marginally lower at 74,243.34 as weakness in IT, telecom, metals, and select heavyweight stocks outweighed gains in FMCG and financial counters. Despite the modest decline, the index managed to hold above key support levels, suggesting that selling pressure remains contained for now. The broader market tone continues to be cautious amid mixed global cues and uncertainty surrounding macroeconomic and geopolitical developments. Technically, immediate support is placed at 73,504, followed by a stronger cushion near 73,046. On the upside, resistance is seen at 74,983 and 75,441. A sustained move above the resistance zone could improve sentiment and open the door for further gains, while a breakdown below support may lead to increased downside pressure in the short term.