Sensex and Nifty Pare Gains Despite Geopolitical Deal: Market Faces Headwinds from IDF Stance and Profit Booking
Benchmarks Sensex and Nifty experienced a decline in their gains on June 15th after initially surging following news that the US and Iran had reached an initial deal to end hostilities and resume traffic through the Strait of Hormuz. The markets, which saw strong pre-market activity fueled by the geopolitical developments, registered profit taking and faced technical resistance.At 12:35 pm, both indices were positive but showed signs of consolidation. The Sensex was trading at 76,460.56, gaining 932.61 points or 1.23%. The Nifty traded at 23,912.50, marking a gain of 289.60 points or 1.23%.
Key Factors Driving Market Moderation
A significant factor tempering the rally was the firm stance taken by Israel regarding security operations in surrounding regions. The Israeli Defence Minister stated that PM Benjamin Netanyahu is guiding a policy maintaining IDF forces in security areas across Lebanon, Syria, and Gaza. Operations are intended to eliminate "terrorist" infrastructure, including homes located in contact villages.The Defence Minister confirmed that the capture of these territories and security zones remains a top achievement for the IDF. This commitment was communicated to US President Donald Trump and other senior American leaders. Critically, the Israeli Defence Minister affirmed that Israel rejects any withdrawal from Lebanon despite potential future pressures.
Profit Booking and Technical Resistance Concerns
The market witnessed substantial profit booking after benchmarks had experienced significant run-ups in preceding sessions. The Sensex had rallied nearly 3,000 points over two days, and Nifty had previously reclaimed the 24,000 mark intraday. Consequently, on June 15th, the Sensex fell 350 points from its day's high, while Nifty was trading close to the 23,900 level in afternoon trade.Analyst sentiment highlights the need for further technical breakthroughs before sustained bullish momentum returns. Axis Securities noted that Nifty's monthly options indicate steady Call resistance at both 24,000 and 25,000. This suggests a cautious sentiment coupled with an expansion of the downside trading range.
Options Market Insights Signal Consolidation Breakout
Axis Securities projects that Nifty futures are likely to trade between 23,000 and 24,000, identifying 23,500 as a strong support level. Choice Broking also highlighted that options chain positioning shows strong support around the 23,500 strike due to heavy put writing activity.Immediate resistance remains visible near the 23,800 and 24,000 strikes, where call writers are actively positioned. A confirmed breakout above these levels could trigger fresh short covering, potentially leading to renewed upside momentum. Choice Broking concluded that Nifty has completed a consolidation breakout after several range-bound sessions, signaling strengthening demand at lower accumulation levels.
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