The sharp rally in Indian equities lost momentum on Friday, with the Sensex and Nifty slipping deep into the red and snapping a five-session winning streak, as heavy selling in IT stocks, weak global cues and other headwinds weighed on investor sentiment. Sensex tumbled 607 points to close at 76,802.90, while Nifty 50 declined 155 points to end the session at 24,013.10. This came after the benchmark indices had jumped up to 5% over the past five sessions.
Here's how analysts read the market pulse
The equity market witnessed profit booking following the recent relief rally, as investor sentiment was dampened by the unexpected cancellation of peace talks between the US and Iran, said Vinod Nair, Head of Research at Geojit Investments. He noted that the IT index experienced a sharp correction, driven by Accenture’s softer outlook, which has heightened concerns over discretionary and digital spending. “In the near term, investors are likely to adopt a cautious tone, with participants awaiting greater clarity on the peace deal and monitoring the slow progress of the southwest monsoon. Nevertheless, a buy-on-dips strategy appears prudent, supported by the current comfort in oil prices and expectations of an earnings revival in H2FY27,” he added.
US Stocks
US markets remained closed on Friday for the Juneteenth holiday. In the previous session, Wall Street had rebounded sharply, with the S&P 500 gaining 1.1 per cent, the Dow industrials rising 0.1 per cent and the Nasdaq Composite surging 1.9 per cent on strong technology-led buying.
European markets
European markets ended lower on Friday as investors remained cautious amid geopolitical uncertainty and delayed talks between Iran and the United States. Germany’s DAX slipped 0.16 per cent to close at 24,985.82, while France’s CAC 40 declined 0.55 per cent to 8,421.14. Britain’s FTSE 100 also fell 0.35 per cent to end at 10,363.27, reflecting subdued sentiment across the region.
Tech view
The Nifty snapped its five-session winning streak and formed a small-bodied bullish candle on the daily chart, Nilesh Jain, VP and Head of Technical and Derivative Research at Centrum Finverse, highlighted. Despite the intraday weakness, the index witnessed a strong recovery from lower levels and managed to close above the 24,000 mark on a weekly basis, he added.
“The broader trend remains positive as the index continues to trade above its short-term 50-DMA, placed at 23,840, keeping the possibility of a gradual move towards 24,400 intact in the near term. Momentum indicators also remain supportive, with the MACD sustaining a buy crossover and the RSI holding above the 60 mark, indicating a bullish undertone. Meanwhile, India VIX declined 13% during the week to settle below 13, and any further moderation in volatility could provide additional support to the market’s positive sentiment,” the analyst said.
“Overall, the technical outlook remains bullish, with support placed at 23,900 and positional support at 23,800, while resistance is seen in the 24,200–24,250 zone. A buy-on-dips strategy should be adopted,” said Vatsal Bhuva, Technical Analyst at LKP Securities.
Most active stocks in terms of turnover
Infosys (Rs 4,767 crore), Reliance Industries (Rs 3,279 crore), Bharti Airtel (Rs 3,034 crore), TCS (Rs 2,776 crore), HDFC Bank (Rs 2,639 crore), New India Assurance (Rs 2,366 crore), and IFCI (Rs 1,773 crore) were among the most active stocks on the NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 41.62 crore), IFCI (Traded shares: 20.58 crore), Suzlon Energy (Traded shares: 13.99 crore), Yes Bank (Traded shares: 13.25 crore), New India Assurance (Traded shares: 11.96 crore), Ola Electric (Traded shares: 10.91 crore) and Zee Entertainment Enterprises (Traded shares: 7.5 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
New India Assurance, Transformers & Rectifiers, Berger Paints, Schloss Bangalore, Caplin Point, ITC Hotels and Aafhar Housing Finance were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on the NSE were Schloss Bangalore, Caplin Point, GE T&D India, HFCL, Carborundum Universal, Anand Rathi Wealth and Craftsman Automation.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were FACT, Infosys, Bata India, Adani Wilmar, ICICI Pru Life, LTI Mindtree and Balrampur Chini.
52-week low
Among the ones that hit their 52-week lows on the NSE were Infosys, LTIMindtree, TCS, EID Parry, Tata Elxsi and Wipro
Sentiment meter favours bulls
Out of the 3,401 stocks that traded on the NSE on June 19, Friday, 1,760 stocks witnessed advances, 1,522 saw declines, while 119 stocks remained unchanged.
