Markets give up gains in late trade: Sensex down 850 points from day’s high, Nifty below 25,100 – 5 key highlights
1. Market Snapshot – Midday Euphoria to Evening Dip
The Indian equity markets rallied strongly in early trading hours, with Sensex gaining over 800 points and Nifty surging above 25,500. However, by mid-afternoon, profit booking intensified, dragging Sensex down approximately 850 points from the day's peak. Nifty also slumped back below the 25,100 mark.
2. Sector-Wise Movement
Banking & Financials: Underperformed as profit-taking hit PSU banks hard.
IT & Pharma: Displayed resilience with modest gains, buoyed by global cues.
Metals & Auto: Reversed early gains, pressured by weak domestic demand and crude oil concerns.
3. Key Drivers Behind the Volatility
Global Sentiment: Weak US futures and mixed European cues weighed on investor confidence.
FII Activity: Net outflows by foreign institutional investors added downward pressure.
Macro Triggers: Rising bond yields and comments from global central banks fueled risk-off sentiment.
4. Support and Resistance Levels
Sensex: Immediate support lies near 66,000–66,200. A breakdown could test 65,500. Resistance continues at the day's high of around 67,000.
Nifty: Key support zone between 25,000–25,050. Immediate resistance remains at 25,500. A decisive break either way could set next leg momentum.
5. Investor Action Points
Short-Term Traders: Consider square-off positions near resistance and keep tight stop-losses.
Long-Term Investors: Use dip-buying strategies if core portfolio holdings are fundamentally strong.
Risk Management: Limit exposure to high-beta names and maintain portfolio diversification.
FAQ
Q1: Why did the market give up gains late in the session?
Profit-booking, weak global cues, foreign fund outflows, and rising bond yields led traders to lock in early gains.
Q2: Is the Nifty below 25,100 a bearish signal?
Not necessarily—it tests a key support level. A sustained break below 25,000 could signal further downside. However, if support holds, markets may rebound.
Q3: What should investors do in this volatility?
Short-term traders should use tight stops and book gains. Long-term investors may consider adding quality stocks on dips.
Q4: Which sectors offer opportunity in the current market?
IT and Pharma are relatively defensive. Banking may remain volatile; select financially sound PSU and private banks for value plays.
Q5: How significant are foreign institutional investor (FII) outflows?
FIIs booking profits or exiting reduces market liquidity and exerts selling pressure. Monitoring FII trends is critical for sentiment outlook.
Published on: June 24, 2025
Uploaded by: PAVAN
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