Muted Start to June Series: Nifty Closes Flat Ahead of Market Holiday

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty extended its losing streak for a second session, slipping marginally by 6 points to settle at 23,907. Nifty remained in the narrow range ahead of Thursday's market holiday. NSE cash market turnover rose by 6% compared to the previous session.

Among index constituents, Tata Motors, Hindalco, and Power Grid led the gains, while ONGC, HDFC Bank, and HDFC Life emerged as the top laggards.

Sectoral trends were mixed, with Media, Metals, and Auto stocks outperforming. On the other hand, Financial Services, Private Banks, IT, and FMCG indices ended in the red.

Broader markets continued to outperform the benchmark, with the Nifty Midcap 100 and Smallcap 100 advancing 0.42% and 0.15%, respectively. Market breadth remained positive, reflected in a BSE advance-decline ratio of 1.19, highlighting sustained interest in mid- and small-cap stocks.

Despite early weakness, the Indian rupee recovered from intraday lows to close with a marginal loss, supported by softer crude oil prices and a broad-based decline in the US dollar. Easing month-end dollar demand also aided the late recovery ahead of the holiday.

From a technical perspective, Nifty is hovering around its 50-DEMA near 24,000, with the recent swing high at 24,100 acting as immediate resistance. On the downside, support is seen at 23,800, where the prior breakout aligns with the 20-DEMA, while a stronger base is placed near 23,600. These levels are likely to guide near-term positioning until a decisive breakout provides directional clarity.

Source : Equity Bulls

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