Indian stock market: India’s benchmark stock indices, the Sensex and Nifty 50, ended their five-session winning streak on Friday, June 19, weighed down by a sharp sell-off in information technology stocks after Accenture lowered its revenue growth outlook. Investor sentiment was further dampened by weak global cues, renewed selling by foreign institutional investors (FIIs), and persistent geopolitical uncertainties.
The Sensex dropped 607 points, or 0.78%, to settle at 76,802.90, while the Nifty 50 declined 154.90 points, or 0.64%, to close at 24,013.10.
During the intraday trade, the Sensex plunged more than 900 points, slipping below the 76,500 mark, while the Nifty 50 fell over 200 points to breach the 23,950 level. The decline came after a robust rally in the benchmark indices, which had advanced nearly 5% over the previous five trading sessions.
Stock market outlook for next week
Ponmudi R, CEO – Enrich Money, believes that the investor focus in the coming week is expected to stay firmly on developments related to the US–Iran peace efforts.
“Renewed reports that US and Iranian negotiators are set to reconvene in Switzerland for fresh discussions—just a day after previously scheduled talks were cancelled—along with the implementation of the Israel–Lebanon ceasefire, have strengthened expectations of a wider diplomatic resolution in the region. Consequently, financial markets are likely to remain highly responsive to geopolitical developments, with any signs of further progress likely to bolster global risk appetite,” Ponmudi said.
He further noted that crude oil prices will remain a key variable, with continued stability supporting India’s macroeconomic outlook, while any deterioration in Middle East relations could reignite volatility. Investors will also closely monitor institutional flows, global bond yields, currency movements and major economic data releases.
“While easing geopolitical risks, lower commodity prices and strong domestic liquidity have supported the recent market recovery, sustained gains will likely depend on the successful implementation of the peace agreement and broader global macroeconomic stability,” he added.
Key technical levels to watch out for next week –
Sensex
On the technical outlook, Ponmudi said that Sensex continues to trade with a constructive bias after extending its recovery from recent lows. From a technical perspective, the 77,500–77,300 zone remains the immediate resistance area. A sustained move above this level could strengthen bullish momentum and pave the way for a further advance towards the 78,000–79,000 region.
“On the downside, the 76,500–76,400 zone is expected to act as immediate support. Holding above this region will be essential to preserve the current recovery structure. A decisive break below these levels could lead to profit booking and drag the index towards the 76,200–76,100 support zone. Overall, the technical outlook remains positive, although sustained follow-through buying will be required to confirm the next leg of the rally,” said Ponmudi.
Nifty 50
On the Nifty 50 outlook, Hitesh Tailor, Research Analyst at Choice Broking, said that on the upside, immediate resistance levels are placed at 24,200 and 24,400. A sustained move above these levels could trigger further upside momentum and strengthen the recovery trend.
“On the downside, support is seen at 23,800 and 23,600. A breakdown below 23,600 may invite renewed selling pressure and weaken the ongoing recovery structure. Considering the current technical setup, traders are advised to maintain a stock-specific approach while following strict risk management practices,” Tailor said.
Bank Nifty
Meanwhile, on the Bank Nifty outlook, Tailor highlighted that the index formed a Doji candlestick pattern on the weekly chart, indicating indecision after the recent sharp recovery. However, the index has successfully sustained above its previous weekly swing high, suggesting that buyers continue to maintain control and the breakout remains valid.
“The index is trading above its 20, 50, 100 and 200-week EMA levels, highlighting a strong underlying trend and reinforcing the positive market structure. Weekly RSI has improved to 55.79 and continues to move higher above the neutral mark, indicating strengthening momentum and improving participation. Immediate support is placed in the 57,000–56,800 zone, while resistance is seen at 58,500 and 58,700. Sustaining above the support zone may keep the broader bullish structure intact in the coming weeks,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
