Trade Setup June 20: Nifty stays flat, but sharp midcap sell-off raises market alarm
The Nifty50 index ended marginally lower for the third straight session on June 19, closing at 24,793 with a 19-point dip. Despite the index remaining rangebound—moving within a narrow 130-point band—concerns escalated over a steep sell-off in the broader market, particularly among midcaps.
Nearly 90% of the 100 midcap stocks saw declines, pushing the Nifty Midcap index down by 2%, even as frontline benchmarks remained largely flat to negative. This stark divergence signals brewing caution among investors.
Among sectoral indices, only auto managed to close in the green. Eicher Motors and M&M emerged as standout gainers, providing some relief to an otherwise weak session.
On the Nifty, top performers included Tata Consumer, Eicher Motors, and M&M. In contrast, Adani Ports, Bajaj Finance, and Shriram Finance weighed down the index with notable losses.
In the IT space, Tech Mahindra slipped 2% after Morgan Stanley downgraded the stock to "Underweight." Meanwhile, Wipro rose 2% as the brokerage upgraded it to "Equal-weight."
Swiggy shares gained 2% following IIFL Capital's optimistic coverage. The brokerage initiated a "Buy" call on the stock with a price target of ₹535, estimating a potential upside of 46%.
Markets remain cautious amid global geopolitical tensions, with participants eyeing signals for a broader trend reversal or continued consolidation.
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