Sensex, Nifty close lower amid global volatility, profit booking

Indian equity markets experienced a downturn on Friday, influenced by profit booking and weak global cues. The BSE Sensex fell 182.01 points, or 0.22 per cent, closing at 81,451.01, while the NSE Nifty dropped 82.90 points, or 0.33 per cent, finishing at 24,750.70. This decline mirrored a broader market weakness, with sectoral indices showing mixed results.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted a mixed performance in the equity markets for the week. "Equity markets performance remained mixed this week. While the larger indices like Nifty 50 and Sensex 30 remained flattish, BSE Midcap and BSE Smallcap indices saw positive gains," he said. The BSE Capital Goods and BSE Realty indices notably outperformed.

Globally, equity markets have been volatile due to several factors. Among them, US court rulings on tariffs and slow trade negotiations with major economies have contributed to the unease, alongside elevated global bond yields. These developments have weighed on investor sentiment throughout the week.

Ajit Mishra, SVP (Research) at Religare Broking, remarked on the market's sluggish start to the June expiry, stating, "Market began the June expiry on a muted note and ended marginally lower, continuing the ongoing consolidation phase." He highlighted that most sectors faced pressure, but resilience in banking and select heavyweight stocks helped mitigate the overall downturn.

On the technical front, Amol Athawale, VP-Technical Research at Kotak Securities, provided insights into the support and resistance levels for Nifty. "Market witnessed profit booking at higher levels. For Nifty, we believe that the 20-day simple moving average (SMA) and the level of 24,650/80900 will act as key support zones for short-term traders, while 25,000/82200 will serve as a key resistance area for the bulls," he explained. A breakout above these resistance levels could push the market higher, although a breach of support could lead to a retest of lower levels.

In terms of Nifty Bank, Athawale identified 55,000 as the critical support level. "Above this, the uptrend wave is likely to continue towards 56,500–57,000," he noted. However, if the index falls below 55,000, it could be vulnerable to corrections down to 54,500–54,200.

The early arrival of the southwest monsoon has been a positive development, expected to benefit the rural economy. A normal monsoon could support agricultural activities, boosting rural demand and economic growth.

Overall, the market maintained a slightly negative breadth, with decliners outpacing gainers. Metals, IT, and automotive sectors were among the top losers, although the banking sector showed resilience. The market remains cautious due to ongoing global uncertainties.