Nifty’s Resilient Close: A Deep Dive into Market Dynamics

The Indian equity market, specifically the Nifty index, demonstrated remarkable resilience on Thursday, staging a last-hour recovery to close near its day’s high. This positive momentum, extending to a fifth consecutive session, was bolstered by a confluence of factors including optimism surrounding the India-UK Free Trade Agreement and a decline in crude oil prices. Foreign institutional investors (FIIs) also played a supportive role, with net equity purchases worth Rs 101.59 crore on June 17.

Despite an initial flat-to-negative start and subsequent volatility driven by selling in IT stocks, the Nifty managed to overcome these challenges. A note of caution did emerge from the U.S. Federal Reserve’s decision to keep interest rates unchanged, coupled with projections hinting at a potential rate hike later this year. However, the market ultimately shrugged off these concerns, culminating in a strong finish.

Market Performance Snapshot

Diving into the numbers, the India Volatility Index (VIX) saw a decrease of 3.90%, settling at 12.67, indicating a reduction in short-term market volatility expectations. The 50-share Nifty closed up by 82.30 points, or 0.34%, to reach 24,168.00.

The futures market provided interesting insights. Nifty June 2026 futures concluded at 24209.00 (LTP), trading at a premium of 41.00 points over the spot closing of 24168.00. Similarly, Nifty July 2026 futures ended at 24302.90 (LTP), maintaining a premium of 134.90 points over the spot closing. A contraction of 728 units was observed in Nifty June futures, bringing the total open interest (Contracts) to 2,57,843 units. The near-month derivatives contract is set to expire on June 30, 2026.

Sectoral and Stock Highlights

Most sectoral indices finished the day in positive territory, with the notable exceptions of IT and Metal stocks. In the F&O segment, Max Healthcare Institute, FSN E-Commerce Ventures, and Adani Power emerged as the top gainers, showcasing robust performance. Conversely, Infosys, NBCC (India), and L&T Finance were among the top losers.

Analyzing the index option segment, maximum Open Interest (OI) continues to be concentrated in the 24900 – 25100 calls and 23900 – 24100 puts, suggesting these are the expected trading range boundaries. Specifically, the maximum OI outstanding for Calls was recorded at 25000 SP (1,53,855 units), while for Puts, it stood at 24000 SP (1,00,292 units). The calculated Support and Resistance levels for Nifty are 24073.55 (Support), 24131.40 (Pivot Point), and 24225.85 (Resistance).

The Nifty Put Call Ratio (PCR) for the June month contract was 1.08, providing a gauge of market sentiment. Among the scrips with the highest PCR, Polycab India led with 1.54, followed by Bosch (1.43), Cholamandalam Investment and Finance Company (1.18), Petronet LNG (1.12), and IDFC First Bank (1.04).

Individual Stock Futures Activity

Examining the most active underlying contracts in the June month futures, HDFC Bank saw a significant addition of 17,697 units of Open Interest. Its futures traded at a discount of 10.90 points at 789.90 (LTP) compared with a spot closing of 800.80, with 90,185 contracts traded. Infosys also experienced an addition of 16,397 units of Open Interest; its futures were at a discount of 1.70 points at 1125.70 (LTP) against a spot closing of 1127.40, with 39,474 contracts traded.

Tata Motors Passenger Vehicles futures traded at a discount of 2.35 points at 362.20 (LTP) versus a spot closing of 364.55, with 26,403 contracts traded. State Bank of India futures, however, traded at a premium of 3.70 points at 1046.20 (LTP) compared to its spot closing of 1042.50, adding 1,432 units of Open Interest across 21,841 contracts. Reliance Industries futures also showed a premium of 2.30 points at 1333.30 (LTP) against a spot closing of 1331.00, seeing an addition of 4,783 units of Open Interest from 19,595 contracts traded. Notably, BSE witnessed a contraction of 985 units of Open Interest in its June month futures.

Overall, the market demonstrated a robust recovery, with specific sectors and stocks showing varied performances, all influenced by both domestic and international economic cues.