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Indian stock market benchmarks, the Sensex and the Nifty 50, ended with modest gains on Wednesday amid a lack of major cues. The Sensex closed 123 points, or 0.15 per cent, higher at 82,515.14, while the Nifty 50 settled with a gain of 37 points, or 0.15 per cent, at 25,141.40. Mid and small-cap segments ended mixed.

Also Read: Affordable housing financiers get a RBI rate cut boost. But it may not last. 

After an impressive four-day rally, banking stocks took a breather on 10 June, leading to a subdued performance in the Bank Nifty. Despite this pause, the broader market remained stable, with India VIX continuing its downward trend, signalling a lack of investor anxiety.

Meanwhile, the IT sector stood out as a clear winner, with heavyweight technology firms—TCS, Infosys, HCL Technologies, and Wipro—fuelling a strong uptick in the Nifty IT index. Large-cap tech stocks drew investor interest, keeping momentum alive in the sector.

In contrast, the real estate space faced selling pressure for the second consecutive session. The Nifty Realty index saw profit booking, as investors secured gains, leading to a dip in the sector.

Overall, the market moved within a tight range, reflecting cautious sentiment among traders. The decline in volatility indicators pointed toward stability, as investors weighed sector-specific movements against broader economic cues. With banking stocks on hold and IT leading the charge, market dynamics continue to evolve, shaping investment trends.

Also Read: Rally in SBI Card may have priced in improved outlook

There is a lack of clarity in the market. There really wasn’t much local news flow to contain the volatility induced. The moves were also reasonably large, creating sufficient moves to bring people in, only to get knocked out the following day! Trading, therefore, was quite difficult throughout the week, and it would have been a wonder if one came out largely unscathed in the week.

Small body candles at higher levels does not inspire any confidence. While we head towards the end of the week, we have to see how the trends shall unfold. At the moment, there is a high possibility that there could be some profit booking as markets are not able to hold on to the gains.

As Bank Nifty failed to live up to the expectations supports around 56000 is now under threat as trends take a breather. Nifty now seeks to contest the resistance around 25200 mark while Bank Nifty is struggling to hold 56000 to clear the air of uncertainty.

Also Read: Bata’s turnaround is taking time—and the market’s patience is wearing thin

For Nifty to stage an upmove the spot needs to close above 25200 which acts as a big hurdle is the immediate resistance  for some bullish revival. With the Open Interest data clearly indicating that 25200 is an important point of contention one should keep tracking a 30-minute range move on Thursday as an important metric for creating some longs.

Volatility is now part of the ever-changing market scenario as the sentiment keeps changing. Risk management is critical, as the lack of clarity is greater than ever.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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