Indian benchmark indices snapped their two-day gaining streak on June 29, with the Nifty ending near the day's low as broad-based selling pressure across sectors and the broader market weighed on sentiment.

After trading in a narrow range during the first half of the session, profit booking intensified in the afternoon, dragging the Nifty to an intraday low of 23,924.55. Selling pressure was led by auto, IT, oil & gas, and banking stocks, while weakness in the broader market further dampened investor sentiment.

At close, the Sensex was down 372.10 points or 0.48 percent at 76,728.37, and the Nifty was down 109.75 points or 0.46 percent at 23,946.25.

The broader indices performed inline with main indices with Nifty midcap index falling 0.4 percent and smallcap index declining 0.6 percent.

Biggest Nifty losers were Kotak Mahindra Bank, M&M, Maruti Suzuki, Adani Enterprises, Interglobe Aviation, while gainers included Max Healthcare, Coal India, Dr Reddy's Laboratories, Eternal and Trent.

Among sectors, Auto index shed 2%, while PSU Bank, Media, IT, Oil & Gas down 1% each. On the other hand, Metal, Pharma, Healthcare up 0.5-1%.

More than 160 stocks touched their 52-week high on the BSE, including Dr Reddy's Labs, Nuvama Wealth, GMR Airports, Aurobindo Pharma, Apollo Hospitals, Welspun Corp, ACME Solar, Radico Khaitan, Oracle Financial Services., among others. Click to View More

Among individual stocks, Dr Reddy's Laboratories shares gained more than 2 percent after USFDA completed a Pre-License Inspection (PLI) at the company's biologics manufacturing facility in Bachupally, Hyderabad with seven observations, Persistent Systems shares fell 11 percent after the company announced plans to acquire Nagarro SE through its subsidiary, Galaxy Germany Holding SE (BidCo).

Power Finance Corporation (PFC) declined about 2 percent after its board approved the scheme of amalgamation of REC with PFC, Indoco Remedies shares added 2 percent after company's Goa facility received EU GMP certification from the Malta Medicines Authoritys. Waaree Energies share price slipped 4 percent despite clarifying about US customs ruling, with no impact on US operations.

The Indian rupee snapped its two-day gaining streak, erasing all its intraday gains to settle 13 paise weaker at 94.53 per US dollar on Monday, compared with Thursday's closing level of 94.40.

New Listing

Shares of Turtlemint Fintech ended marginally higher after making a weak debut on the stock exchanges on Monday. The stock listed at ₹134.90 on the NSE, a discount of 11.25 percent to its issue price of ₹152. On the BSE, the shares debuted at ₹136.20, reflecting a 10.39 percent discount from the issue price.

Outlook for June 30

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed profit booking at higher levels. The Nifty ended 110 points lower, while the Sensex was down by 372 points. Among sectors, Pharma, Healthcare, and Metal indices rallied nearly 1 percent, whereas the Auto index shed 1.65 percent.

Technically, after a muted opening, the market witnessed selling pressure at higher levels throughout the day. It also formed a bearish candle on the daily charts, indicating further weakness from the current levels.

We are of the view that 24,000/76800 would act as an immediate reference point for day traders. Below this level, the market could retest the 50-day SMA (Simple Moving Average) or levels of 23,800–23,750/76200-76000. On the flip side, above 24,000/76800, the rally could continue towards 24,150–24,200/77300-77500. The intraday market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty started the week on a weak note and remained under pressure throughout, as the index slipped below the 50EMA on the hourly chart. The momentum indicator also remained weak, with the RSI in a bearish crossover, indicating subdued near-term sentiment.

Volatility may remain elevated in the very near term due to the NSE monthly expiry on Tuesday. However, the short-term trend remains constructive as long as the index holds above the 23,800 support level. Unless the Nifty falls below 23,800, a buy-on-dips strategy should be maintained. On the higher end, 24,200 is likely to continue acting as the immediate resistance.

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