Market Wrap

Indian equity markets ended lower in a highly volatile trading session as the first weekly expiry under the new Closing Auction Session (CAS) mechanism amplified intraday swings. After opening with a gap-down, benchmark indices remained under pressure for most of the day before a strong wave of buying during the closing auction helped recover a significant portion of the losses. Even after the late rebound, the Nifty 50 closed 0.64% lower at 24,614, reflecting the heightened volatility surrounding the new settlement framework.

Sectoral performance remained mixed, with metal stocks emerging as one of the key outperformers after witnessing prolonged selling pressure in recent months, indicating that the sector may be approaching an intermediate bottom. Meanwhile, the ongoing June quarter earnings season continued to provide support to broader market sentiment, as stronger-than-expected results from several large companies reinforced confidence in corporate earnings despite an uncertain global environment.

Global markets also offered a constructive backdrop. Strong overnight gains on Wall Street lifted investor sentiment, while Asian and European equities traded with broad-based strength. Market participants also continued to monitor crude oil prices, global bond yields and developments in international trade policies, as these factors are expected to influence foreign institutional investor (FII) flows and the near-term direction of domestic equities.

What's Ahead

Market participants are expected to remain focused on company-specific opportunities as the June quarter earnings season enters another crucial phase. Investors will closely monitor upcoming corporate results, assess the evolving impact of the new Closing Auction Session on market behaviour, and track key global macroeconomic developments, including U.S. economic data releases and commentary from major central banks. Continued strength in corporate earnings, coupled with supportive global risk sentiment, could help markets stabilise despite the elevated volatility witnessed in recent sessions.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 continues to maintain a sideways-to-bullish outlook despite Wednesday's profit booking, as the index recovered sharply from its intraday low to form a long lower wick on the daily chart, indicating strong buying interest near lower levels. The benchmark remains above all its key moving averages, reinforcing the broader positive trend, while the RSI at 61.77 suggests momentum continues to favour the bulls. The 24,350–24,400 zone will act as immediate support, and as long as the index holds above this range, the broader uptrend is expected to remain intact despite the possibility of near-term consolidation. On the upside, 24,750–24,800 remains the immediate resistance zone, with a sustained breakout likely to revive bullish momentum. The Put-Call Ratio (PCR) at 1.11 reflects a balanced-to-positive derivatives setup, while India VIX at 12.19 indicates a slight increase in volatility. The expected trading range for the next session is 24,350–24,800.

BankNifty

Bank Nifty also retains a sideways-to-bullish bias after recovering from intraday lows, with buying interest emerging around the 57,400 level, which coincides with the 20-day EMA. Although the index witnessed profit booking following its recent rally, the recovery from lower levels suggests that buyers continue to defend key support zones. As long as Bank Nifty sustains above 57,400–57,600, the broader trend is likely to remain constructive, while a decisive breakout above the 58,500–58,700 resistance zone could trigger the next leg of the uptrend. However, a break below support may invite further corrective pressure. For the next trading session, the index is expected to trade within a range of 57,400–58,700, with traders likely to continue adopting a buy-on-dips approach while key support levels remain intact.

Sensex

The BSE Sensex maintains a sideways-to-bullish outlook despite ending lower after facing rejection near its 200-day EMA. The index witnessed profit booking following a gap-up opening but managed to close above its intraday lows, indicating that buying interest remains present at lower levels. While the benchmark slipped below the 200-day EMA, it continues to trade above its 20-day, 50-day and 100-day EMAs, suggesting that the short-to-medium-term trend remains positive. Immediate support is placed at 77,700–78,000, whereas 78,900–79,200 remains the key resistance zone. A decisive move above this resistance could strengthen the bullish outlook, while holding above support will be crucial to maintain the positive market structure. The expected trading range for the next session is 77,700–79,200.