Sensex gained 1290 points; All the sectors posted gains with broad based rally.
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, June 19, 2025: Benchmark indices staged a strong recovery on Friday, helped by positive global cues as US kept the door open for diplomatic solution to Middle East crisis. Broader markets also posted strong gains.
Markets opened flat but soon rallied on positive global cues as US indicated negotiations with Iran are still possible helping improve the risk appetite. The imminent threat of US intervention in the conflict receded for now and risk assets gained on the news. On the domestic front, RBI announced relaxed provisioning requirements for under-construction infrastructure and real estate projects. Instead of the earlier proposed 5%, lenders now need to set aside only 1.0% to 1.25% for such projects. This move is expected to lower funding costs and boost credit flow to infrastructure sectors, providing significant relief to banks and NBFCs thus helping the Nifty Infra and PSU bank stocks. All the sectors posted gains with broad based rally.
According to Amol Athawale, VP-Technical Research, Kotak Securities, In the last week, the benchmark indices bounced back sharply. The Nifty ended 1.59 percent higher, while the Sensex gained 1290 points. Among sectors, the Consumer, Infra and Private Bank indices outperformed, Consumer rallied 2 percent and Infra and Private Bank indices gained over 1 percent whereas the Media index was the top loser, shedding 2.85 percent. Technically, on weekly charts, the market has formed bullish candle, and on daily charts, it has formed a higher bottom formation. Additionally, it is currently trading above the 20-day Simple Moving Average (SMA), which is broadly positive.
We are of the view that, last Friday, the market not only cleared the 24,900/81800 resistance level but also succeeded in closing above it. For short-term traders, the key support zones are now 24,850/81600 or the 20-day SMA, and 24,700/81100. As long as the market remains above these levels, the bullish sentiment is likely to continue. On the higher side, 25,200/82700 would be the immediate resistance level for the bulls. Above this, the market could move up to 25,400–25,500/83300-83600.
However, if the market dismisses 24,700/81100 then uptrend could become vulnerable. In such a scenario, it could retest the 24,500/80500 level. Further downside could push the market toward 24,400/80200 or the 50-day SMA.
For Bank Nifty, the higher bottom support is placed at 55,500. Above this, it could bounce back toward 57000-57350. Conversely, if it slips below 56,500, it could decline toward the 50-day SMA or levels of 55,000 and 54,800.
Technically, Nifty reclaimed the 25000 level and closed above 25100 paving for further upside if news flow stays supportive. Much will depend on the geopolitical developments and the fallout from the conflict. On the upside, 25200-25250 acts as immediate resistance zone while 25000 will be immediate support on the downside.
