Bajaj Broking Research - Closing Market Commentary for 19th June 2026

Indian benchmark indices snapped their five-session winning streak and witnessed profit booking following the recent sharp upmove, primarily led by weakness in IT stocks. The session remained highly volatile due to FTSE and MSCI rebalancing activities, resulting in significant intraday swings. Despite the selling pressure, the Nifty managed to hold above the psychologically important 24,000 mark, indicating resilience in the broader market. At close, the Nifty 50 declined 0.64% to settle at 24,013, while the Sensex fell 0.78% to close at 76,802.90.

On the sectoral front, Healthcare and Pharma emerged as the key gainers, attracting defensive buying interest amid broader market volatility. In contrast, Nifty IT remained under pressure and was the primary drag on the benchmark indices. Most other sectoral indices traded in a choppy manner throughout the session and ended with mixed performance.

At the broader market level, buying interest remained intact despite weakness in the frontline indices. The Nifty Midcap 100 index gained 0.22% to close at 62,517, while the Nifty Smallcap 100 index advanced 0.42% to settle at 18,784, indicating relatively stronger participation in the broader market segment.

Nifty Outlook

Nifty on the weekly chart has formed a high wave candlestick pattern with a higher high and a higher low and a bullish gap below its base (23,645-23,817) highlighting extension of the up move. Going ahead, bias remain positive and the index to extend the current up move gradually head towards 24,300 and 24,600 levels in the coming weeks being the 80% retracement of the previous decline (24,601-23,070) and the high of April 2026 respectively.

Some consolidation after a 1100 points up move in just five sessions cannot be ruled out in the Nifty as can be seen on Friday's session. However, we believe the overall structure is positive, dips towards the immediate support area of 23,800 should be used to accumulate quality stocks in a staggered manner.

Immediate support in Nifty is placed at 23,800 levels being the confluence of the 50 days EMA and the upper band of the bullish gap area of last Monday. While key short-term support is placed at 23,500-23,600 levels being the recent breakout area and 61.8% retracement of the current up move 23,070-24,139.

From a structural perspective, the index has retraced 70% of its previous 7 weeks decline from 24,601-23,070 in just 2 weeks. A faster retracement during up move and a shallow retracement at corrective decline highlight positive bias.

Bank Nifty Outlook

Bank Nifty on the weekly chart has formed a doji candlestick pattern with a higher high and a higher low and a bullish gap below its base (56,867-57,076) highlighting extension of the up move. Key observation in the daily chart is that the 20 days EMA has generated a bullish crossover above its 50 days EMA thus supports the positive bias in the index.

We expect the index to maintain positive bias and head towards 58,300 and 59,250 levels in the coming weeks being the measuring implication of the recent range breakout and the 138.2% external retracement of the previous decline 57456-52783.

Some consolidation after 5000 points up move in just 13 sessions cannot be ruled out in the Bank Nifty. However, we believe the overall structure is positive, and any dips should be used to accumulate quality banking stocks in a staggered manner. Key support is placed at 56,000 levels being the confluence of the 38.2% retracement of the entire pullback 53,027-57954 and the recent breakout area.

Source : Equity Bulls

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