Trade Setup June 24: Nifty uncertain below 25,200; Choppy market ahead amid global tensions
Nifty slips below 25,000 amid global tensions. Market likely to stay volatile unless it crosses 25,200. IT, auto, and diagnostic stocks drag indices.
Indian equities kicked off the week on a cautious note as geopolitical tensions in the Middle East rattled investor sentiment. The Nifty opened with a sharp 173-point drop, weighed down by the US airstrike on Iranian nuclear sites over the weekend. This unexpected move led to a spike in crude oil prices, derailing optimism built on last Friday’s rally.
Despite staging a strong intraday comeback—rising 233 points from the day’s low of 24,824—the Nifty closed 141 points down at 24,972, below the crucial 25,000 psychological level. The index's inability to sustain gains points to continued market choppiness, especially as long as it trades below the resistance zone of 25,100–25,200.
According to market experts, a clear breakout above 25,200 could revive buying interest. Till then, traders should brace for more sideways movement. Nagaraj Shetti of HDFC Securities noted that consolidation may continue, with strong support seen at 24,800.
Sectoral Performance and Top Movers:
Gainers: Trent, BEL, and Hindalco led the charge.
Laggers: Infosys, HCL Technologies, and Larsen & Toubro were among the worst performers.
The broader markets outperformed the frontline indices, with the Nifty Midcap 100 rising 0.36% and the Smallcap 100 gaining 0.70%.
IT stocks came under heavy pressure, declining nearly 3%, following Accenture’s weaker-than-expected results. Infosys fell 2%, while HCL Tech, TCS, and Oracle Financial also saw declines between 1–2%.
The auto sector also saw a pullback after the government proposed mandatory ABS installation in all new two-wheelers, impacting stocks like Bajaj Auto, TVS Motor, and Hero MotoCorp.
In the diagnostics space, Dr Lal PathLabs and Metropolis Healthcare slipped up to 4% as Amazon formally entered the sector, launching Amazon Diagnostics in six Indian cities.
Elsewhere, IndiGo shares rose on expectations of inclusion in the Nifty50 index during the semi-annual review, while BSE stock gained 3%.
Outlook for June 24:
Experts suggest watching crude oil trends and global cues closely, as no major domestic events are on the horizon. According to Rupak De of LKP Securities, holding above 24,850 keeps the door open for buying opportunities. A move past 25,000 may push the Nifty towards 25,350 in the near term.
Meanwhile, Devarsh Vakil of HDFC Securities reiterated that despite near-term volatility, the broader bullish structure of the Nifty remains intact. Immediate support lies at 24,733, while resistance continues between 25,136 and 25,222.
Disclaimer: The views expressed by analysts are their own. Please consult certified financial advisors before making investment decisions.
