Sensex, Nifty Open Lower as Fed Pause and Middle East Tensions Weigh on Sentiment

Indian equity indices opened weak on Thursday, 20 June, following cues from global markets after the US Federal Reserve held interest rates steady and signalled only modest cuts in 2025. The BSE Sensex declined by 89.86 points or 0.11 per cent to 81,354.80, while the NSE Nifty 50 dipped 10.10 points or 0.04 per cent to open at 24,801.95.

The weak start follows a downward trend in the previous session, where the Sensex had shed 138.64 points and the Nifty closed 41.35 points lower. The broader market sentiment was also influenced by escalating tensions in the Middle East, particularly the continuing conflict between Israel and Iran, which has heightened global risk aversion.

Adding to the cautious outlook, the Gift Nifty was trading at a discount of nearly 87 points around the 24,740 level, further suggesting a sluggish opening for Indian equities.

The US Federal Reserve’s decision to keep benchmark interest rates unchanged at 4.25 to 4.5 per cent has been viewed with mixed sentiment globally. While the Fed has maintained its restrictive stance, it projected only 50 basis points (bps) of rate cuts in 2025—a more hawkish stance than earlier expectations.

“Despite intraday pressure, the Nifty remains in a consolidation phase. The 25,000 level continues to act as a strong resistance, with 24,700 now serving as key downside support,” said Nandish Shah, Deputy Vice President at HDFC Securities.

Technical analysts noted bearish signals in the Nifty 50, including the formation of a high-wick candle and a dip below the 20-day EMA (Exponential Moving Average). Om Mehra, Technical Research Analyst at SAMCO Securities, said, “The daily RSI has slipped to 53, down from a recent high of 62, confirming bearish divergence. The trend strength is weakening with the ADX below 25 and the +DI falling below –DI.”

VLA Ambala, Co-Founder of Stock Market Today, added that Nifty 50 had formed a Bearish Shooting Star on the daily chart and showed potential support between 24,650 and 24,520. “Resistance can be expected near 24,850 to 24,890,” she said.

Bank Nifty in Consolidation Mode

The Bank Nifty index bucked the trend slightly on Wednesday, closing 114.60 points higher at 55,828.75, forming a small bullish candle. However, analysts indicated that sustained upside would only follow a close above the 56,000 mark.

“A breakout above 56,000 could push the index towards 56,600–57,000. Conversely, failure to surpass this barrier might see a continued range-bound movement between 55,000 and 56,000,” noted a report by Bajaj Broking.

Mehra further explained that the index is trapped between a rising trendline and a falling resistance trendline. “The RSI is at 53 and MACD remains in negative territory. A clear breakout on either side is needed for directional clarity,” he said.

As markets digest global monetary signals and geopolitical uncertainty, analysts believe stock-specific action will dominate in the short term. Traders are advised to watch key levels—24,680 on the downside and 25,000 on the upside—for Nifty 50, while Bank Nifty remains pivotal at 56,000.

Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.