Nifty 50- Nifty Rises 1% to Cross Milestone; Sensex Follows

Nifty 50– Indian stock markets witnessed a significant uptrend on Friday, June 21, with benchmark indices posting robust gains by early afternoon. The rally came despite escalating geopolitical tensions in West Asia, signaling investor resilience and confidence driven by broad-based sectoral buying.

At 1 PM IST, the BSE Sensex surged over 900 points to trade at 82,261.39, marking a 1.11% increase. Similarly, the NSE Nifty 50 crossed the psychological 25,000 mark, climbing 269.95 points to reach 25,063.20, up 1.09%.

Market opens steady, gains momentum in second half

Indian indices opened the day on a muted but positive note, reflecting cautious optimism. In the early trade:

Nifty 50 was up around 200 points or 0.85%, hovering near the 25,000 mark.
Sensex gained approximately 700 points or 0.85%, trading at the 82,000 level.
The Bank Nifty index rose 87 points (0.16%) to 55,665, indicating a modest improvement in the banking space.
The Nifty Midcap 100 also joined the rally, adding 133 points (0.23%) to reach 57,292.

This market behavior highlights sustained domestic interest and institutional support even amid external uncertainties.

Expert insights: What’s driving the move?

Geopolitical tensions balanced by domestic institutional buying

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the Nifty 50 index has been trading within a narrow consolidation range of 24,500 to 25,000 points for the past several weeks, reflecting a phase of market indecision amid mixed global cues and geopolitical uncertainties.

He explained that this range-bound movement indicates a balance between buying interest at lower levels and selling pressure near the upper threshold, suggesting that investors are awaiting a clear trigger—such as a resolution in geopolitical tensions or a major shift in macroeconomic indicators—before making decisive moves.

The upper side of the range will be broken only on news of de-escalation of the Israel-Iran conflict or an abrupt end to the war. There is uncertainty on this.

Vijayakumar also pointed out that domestic institutional buying remains a strong support, especially during market dips:

The lower side of the range is unlikely to break since big buying, particularly by domestic institutions, will emerge on dips.

Crude oil and war impact still looming

However, Vijayakumar warned that should crude oil prices breach the $85 per barrel mark due to continued conflict in the Middle East, the lower band of the Nifty’s trading range could break, putting further pressure on markets.

Sentiment cautious amid Middle East unrest

Market momentum tested by global headlines

Prashanth Tapse, Senior VP of Research at Mehta Equities, highlighted the underlying caution in current market sentiment despite the rally:

While markets may see a steady opening with a positive bias, investors are likely to be in a wait-and-watch mode amidst escalating Middle East conflicts.

He added that bulls have worked hard to keep indices above key levels in recent days:

Bulls have been working hard to float above the dotted lines for the past 3 trading days, but towards close on an uninspiring note.

This suggests that while domestic fundamentals remain strong, global risk factors continue to weigh on market confidence.

Key technical levels to watch

Nifty 50: Psychological barrier at 25,000

The 25,000 mark acts as both a psychological and technical resistance for the Nifty.
Sustained trading above this level could pave the way for higher highs, provided geopolitical risks subside.

Bank Nifty and Midcaps: Moderate but steady

Bank Nifty’s modest rise shows that financials are still treading cautiously.
Midcaps, however, indicate broader market confidence, possibly reflecting greater domestic investor participation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.