Indian stock market erased most of its intraday gains on Wednesday, with the Sensex recording marginal gains and Nifty slipping into the red, with Nifty Smallcap 100 and Nifty Midcap 100 indices crashing more than 1% each.
“Domestic equities ended lower amid weak global cues, as investors turned cautious ahead of a key US inflation print likely to influence the Fed’s policy trajectory. Early gains were reversed due to profit booking, while subdued oil prices, despite fresh geopolitical developments, offered limited support. FMCG stocks outperformed on expectations of price hikes, and private banks advanced following the RBI's easing of FCNR(B) and ECB norms, whereas metals lagged due to softer commodity prices. Although domestic bond yields were lower due to steady foreign interest following the recent policy support to debt markets, slowing mutual fund inflows highlighted emerging pressure on equities amid the ongoing geopolitical uncertainties,” said Vinod Nair, Head of Research of Geojit Investments.
Here's how analysts read the market pulse
"After forming an inverted hammer candlestick on the daily chart, Nifty witnessed a recovery from lower levels. However, in Wednesday's session, the index faced strong selling pressure near the 23,400–23,450 zone. The broader trend remains weak as Nifty continues to form lower highs and lower lows. Moreover, the index is consistently trading below its 20-day moving average, indicating that the short-term trend remains under pressure, while RSI remains below the 50 mark, reflecting subdued momentum. Buying interest is visible around the 23,000–23,100 zone, whereas overhead resistance is emerging from the declining short-term moving averages,” said Vatsal Bhuva, Technical Analyst at LKP Securities.
US Stocks
Wall Street's major indexes extended declines on Wednesday, as technology stocks remained under pressure and renewed tensions between the United States and Iran overshadowed a tame inflation reading.
Volatility has picked up across stock markets in recent days, as investors contend with a widening array of risks, including high valuations in the tech sector, escalating Middle East tensions and expectations that the Federal Reserve may need to hike interest rates to curb inflation.
U.S. consumer prices increased 4.2% in the 12 months through May, the largest gain since April 2023, data showed, as the Middle East conflict raised the price of gasoline and other energy products.
European Markets
Europe's STOXX 600 ended a choppy session little changed on Wednesday, as investors weighed a renewed flare-up in tensions between the U.S. and Iran and looked ahead to the European Central Bank's upcoming monetary policy decision.
Crude oil prices were higher and hovered near $93 a barrel after one of the biggest exchanges in hostilities between the U.S. and Iran since the two countries agreed to a ceasefire in April.
Tech view
According to Vatsal Bhuva from LKP Securities, a range-bound approach is preferred over a directional view. “The expected trading range for Nifty is 23,000–23,550, with 23,200 acting as immediate support, 23,000–23,100 as positional support, and 23,450–23,550 as the key resistance zone,” he added.
“Going ahead, the immediate support for Nifty is placed in the 23050-23000 zone. Any sustainable move below this zone could result in Nifty extending its weakness towards 22850, followed by 22700 in the short term. On the upside, the immediate resistance for Nifty is placed in the 23350-23400 zone,” said SBI Securities.
Most active stocks in terms of turnover
ICICI Bank (Rs 3,360 crore), HDFC Bank (Rs 3,312 crore), Reliance Industries (Rs 2,677 crore), State Bank of India (Rs 1,925 crore), Axis Bank (Rs 1,612 crore), Himadri Speciality (Rs 1,472 crore) and Bharti Airtel (Rs 1,431 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 73.96 crore), Ola Electric (Traded shares: 24.5 crore), Yes Bank (Traded shares: 9.76 crore), JP Power (Traded shares: 6.12 crore), Suzlon Energy (Traded shares: 5.56 crore), Zee Entertainment Enterprises (Traded shares: 5 crore) and HDFC Bank (Traded shares: 4.45 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Inox India, Akum Drugs, Chambal Fertilisers, Afcons Infrastructure, Concord Biotech, ABSL and Coromandel International 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 NSE included Inox India, CCL Products, Apar Industries, Aster DM Health, Caplin Point, Himadri Speciality and Adani Ports SEZ.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Oil India, IFCI, Manappuram Finance, Jindal Saw, NLC India, GE Shipping and HFCL.
52-week low
Among the ones which hit their 52-week lows on NSE included Go Digit General Insurance, HDFC Life, ICICI Prudential Life Insurance Company, Wipro, Zensar Tech, Dalmia Bharat and Reliance Industries (RIL).
Sentiment meter favours bulls
Out of the 3,378 stocks that traded on the NSE on June 10, Wednesday, 1,038 stocks witnessed advances, 2,258 saw declines while 82 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
