Stock market today: Nifty 50, Sensex end flat; midcaps, smallcaps continue their outperformance

Stock market today: Indian stock market benchmarks continued to consolidate for the second consecutive session on Tuesday, June 11, amid weak global cues. 

Despite opening higher and trading in positive territory for a significant part of the session, equity benchmarks—the Sensex and the Nifty 50—ended flat on profit booking in the absence of fresh triggers. 

Investors are booking profits in large-cap stocks as the market focus shifts to the new government's policy decisions, the upcoming Union Budget, and global cues.

Weak global cues further weighed on domestic market sentiment. Major European markets, such as the UK's FTSE, France's CAC 40 and Germany's DAX, have been down following the announcement of a snap election in France. Besides, caution ahead of the US consumer price inflation data and Federal Reserve policy decision on Wednesday also contributed to the market's lacklustre show.

Sensex opened 191 points higher at 76,680.90 against its previous close of 76,490.08 and rose about 370 points to hit its intraday high of 76,860.53. The index, however, fell prey to profit booking in the fag-end and ended 33 points, or 0.04 per cent, lower at 76,456.59.

The Nifty 50 opened at 23,283.75 against its previous close of 23,259.20 and touched its intraday high of 23,389.45. The index settled 6 points, or 0.02 per cent, up at 23,264.85.

But the mid and smallcap segments continued their outperformance. The BSE Midcap index rose 0.74 per cent, while the Smallcap index ended with a gain of 0.95 per cent.

Also Read: Midcaps, smallcaps strongly outperform Sensex in 2024 despite valuation concerns; what is driving broader market?

Some 28 stocks ended higher in the Nifty 50 index, while 22 stocks ended lower.

Shares of ONGC (up 5.69 per cent), Tata Motors (up 1.75 per cent) and Larsen and Toubro (up 1.59 per cent) closed as the top gainers in the Nifty 50 index.

On the flip side, shares of Kotak Mahindra Bank (down 1.30 per cent), Divi's Labs (down 1.27 per cent) and ITC (down 0.95 per cent) closed as the top losers in the Nifty 50 pack.

Also Read: Top Gainers and Losers today on 11 June, 2024: Oil & Natural Gas Corporation, Larsen & Toubro, Kotak Mahindra Bank, Divis Laboratories among most active stocks; Check full list here

Among the sectoral indices, Nifty Bank fell 0.15 per cent, while the Private Bank index slipped 0.16 per cent. The PSU Bank index, however, ended with a slim gain of 0.15 per cent.

Nifty Media (up 1.75 per cent), Oil & Gas (up 1.33 per cent), and Realty (up 1.13 per cent) clocked healthy gains.

Experts view on markets

Ajit Mishra, SVP—Research at Religare Broking, said that the current pause in the index was largely anticipated and should conclude soon. He added traders should maintain a stock-specific trading approach with a positive bias.

"In addition to key sectors, certain themes like agriculture-related stocks (fertiliser and sugar) and chemical stocks are drawing noticeable interest. Participants should adjust their positions accordingly," said Mishra.

Vinod Nair, the head of research at Geojit Financial Services, pointed out that after a notable rebound, the domestic market has stabilised and is awaiting further triggers. With uncertainties in government formation resolved, attention has shifted back to global and domestic indicators.

Nair added that concerns have risen regarding potential US rate cuts following last week's strong US job data, leading to an increase in US bond yields.

"Investors are now gearing up for this week's policy decisions from the US Fed and the BoJ, as well as key inflation data from the US and India, seeking insights into the trajectory of rate cuts," said Nair.

Technical views on Nifty 50

According to Shrikant Chouhan, the head of equity research at Kotak Securities, the short-term texture suggests 23,400/77,000 would be the key resistance zone for the short-term traders, while 23,200/76,300 would act as a crucial support zone.

"We believe that after a 23,400/77,000 breakout, the market could rally to 23,500-23,525/77,300-77,400. On the other hand, below 23,200/76,300, the index could retest to a level of 23,050-23,000/76,000-75,800," said Chouhan.

Rupak De, Senior Technical Analyst at LKP Securities, observed the Nifty 50 remained sideways during the day as there was no directional move. The sentiment might remain sideways as well until it breaks out of the 23150-23350 range.

"Any decisive breakout on either side might confirm the market's future direction. On the higher end, above 23,350, it might move towards 23,600. Meanwhile, support below 23,150 is placed at 23,000-22,900," said De.

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