Nifty holds 24,000 as IT selling caps upside

The Nifty 50 ended Friday at 24,013.10, down 155 points, snapping a five-session winning streak as heavy selling in information technology stocks and weak global cues triggered profit booking. Despite the fall, the index held above the psychologically key 24,000 level and ended the week with gains of about 1.65 percent, keeping the short-term uptrend intact, according to analysts.

Market overview

Index	21 Jun Close	Move & % Change	Comments
Nifty 50	24,013.10	-155 pts (-0.6%)	Snapped five-day rise, yet closed above 24,000 support.
Sensex	76,802.90	-607 pts (-0.8%)	Declined after recent 5 percent rally over five sessions.
Nifty Midcap	62,517	approx. +0.22%	Rebounded intraday, now 0.62% below all-time high 62,908.
Bank Nifty	57,686	approx. -0.48%	Recovered from 57,465 intraday low, still below resistance zone.

Note: figures are approximate; final exchange data not available at time of publication.

• Nifty opened about 177 points lower on weak global cues and stayed range-bound for most of the session.
• Late buying helped Nifty recover from intraday lows and reclaim the 24,000 mark on a closing basis.
• The index has risen for two consecutive weeks, despite Friday’s pullback.
• Broader market remained resilient, with smallcaps trading above key moving averages.

Sectoral action

Sector/Index	Direction (approx.)	Key Drivers
Nifty IT	down 3.65%	Hit by Accenture’s lower revenue guidance and softer demand commentary.
Nifty Tourism	up	Led sectoral gainers on sustained buying interest.
Nifty Healthcare	up	Outperformed in a weak headline session.
Defence index	up, near 52-week high	Supported by positive news flow and strong momentum indicators.

• IT heavyweights such as Infosys and TCS led losses within Nifty.
• Tourism and healthcare indices outperformed, cushioning broader market sentiment.
• Defence names like Paras Defence, MTAR Technologies, Data Patterns and others extended recent gains.

Key movers and market breadth

Category	Statistic	Context
NSE breadth	1,760 advances, 1,522 declines	Out of 3,401 traded stocks on Friday.
52-week highs	Multiple midcaps and defence names	Included GE T&D India, HFCL, Anand Rathi Wealth, others.
52-week lows	Infosys, LTIMindtree, TCS, Wipro	Reflects persistent pressure in large IT.

• Eternal and Bharti Airtel were among top Nifty gainers.
• Stocks like FACT, Bata India, Adani Wilmar and Balrampur Chini saw notable selling.
• New India Assurance and Transformers & Rectifiers attracted strong buying interest.

Technical outlook for Nifty 50

• Nifty formed a small-bodied bullish candle with intraday recovery on the daily chart.
• The index trades above its 50-day moving average near 23,840, signalling a positive short-term structure.
• Immediate support is cited around 23,900, with stronger support between 23,800 and 23,620.
• Resistance is seen in the 24,200–24,250 zone, with potential extension towards 24,400 in the near term.
• Some strategists see upside targets in the 24,300–24,600 band next week, while watching 23,800 on the downside.
• “The overall technical structure remains bullish, with immediate support at 23,900 and positional support at 23,800. Resistance is seen in the 24,200-24,250 zone, and a buy-on-dips strategy remains favourable,”

– “The current weakness in the Nifty is unlikely to derail the market’s near-term uptrend,”

• Momentum indicators such as RSI remain above 60, while MACD holds a buy crossover on daily charts.

Bank Nifty and sector indices: levels to watch

• Bank Nifty faces immediate resistance in the 58,100–58,200 zone, according to technical analysts.
• A sustained move above this band could open upside towards 58,600 and 59,000.
• Support for Bank Nifty is seen around 57,300–57,200.
• The Nifty IT index sits near a crucial monthly support band around 26,500–27,000, with charts still signalling weakness.
• Any IT bounce is expected to face resistance near recent breakdown levels, keeping the trend fragile.

Global cues and volatility

Market/Asset	Movement	Notes
US equities	closed on Friday	Markets shut for Juneteenth holiday after prior tech-led rebound.
European indices	modestly lower	DAX, CAC 40 and FTSE 100 slipped on geopolitical concerns.

• Sentiment was hit by cancellation of planned peace talks between the United States and Iran.
• Analysts flagged slow progress of the southwest monsoon as another domestic risk to monitor.
• India VIX declined about 13 percent during the week to below 13, signalling easing volatility.

Stock-specific technical ideas

• Some analysts highlighted Radico Khaitan with a bullish continuation setup, with upside targets between 4,000 and 4,200.
• Redington was cited as showing recovery signs within a constructive structure.
• New India Assurance, up about 32 percent for the week, is seen retaining positive momentum with tight stop-loss levels.
• Transformers & Rectifiers is viewed as having completed an inverted head-and-shoulders breakout, with near-term consolidation likely.

FAQ

Q: Is the Nifty’s short-term uptrend still intact after Friday’s fall?

• Analysts largely view the short-term trend as positive, with Nifty above its 50-day average and key support near 23,800–23,900.

Q: What are the key Nifty levels to watch in the coming week?

• Support is seen around 23,900 and 23,800, while resistance lies near 24,200–24,250, with potential extension towards 24,400–24,600.

Q: Why are IT stocks under pressure and how does that affect Nifty?

• Accenture’s softer revenue guidance and demand commentary have hurt sentiment in Indian IT, dragging Nifty IT to multi-year lows and capping index upside despite strength in other sectors.

Frequently Asked Questions

Is the Nifty’s short-term uptrend still intact after Friday’s fall?

Yes. Nifty remains above its 50-day moving average near 23,840, with key support around 23,800–23,900, so analysts still see a positive short-term trend.

What are the crucial Nifty support and resistance levels for the week ahead?

Support is placed near 23,900 and then 23,800. Resistance is seen around 24,200–24,250, with possible upside towards 24,400–24,600 if buying resumes.

Why did IT stocks fall sharply and what is the outlook for the Nifty IT index?

IT stocks reacted to Accenture’s lower growth guidance and softer demand commentary. The Nifty IT index is near a key 26,500–27,000 support zone but remains technically weak, with any bounce likely facing resistance at recent breakdown levels.