Markets Lose Momentum as Nifty Nears Make-or-Break Zone

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By S. JHA

Private banks led an early rebound, but renewed selling near resistance levels dragged benchmarks lower; Angel One warns of deeper downside if Nifty breaks below 23,000.

Mumbai, June 11, 2026 — Indian markets are showing a particular pattern — defying global cues to rise, while selling off in the last hour of trading session. Gap down opening is bought, while markets are sold at the day’s high. A perfect traders’ market has been seen in the last few sessions amid deepening Middle East crisis.

Indian equity markets ended lower on Thursday after failing to sustain an early recovery, as profit booking near key resistance levels erased gains made during the first half of the session.

According to Angel One’s market note, the Nifty 50 remains trapped within a narrow trading range, with the 23,100–23,000 zone emerging as a crucial support area and the 23,500 level continuing to act as a formidable hurdle for any meaningful upside.

The benchmark Nifty opened with a gap-down following weakness in Gift Nifty and subdued global cues. Strong buying in private banking stocks initially helped the index recover sharply from morning losses, pushing it above the 23,300 mark during the first half of trade.

However, the rebound lacked follow-through momentum. Selling pressure resurfaced in the latter half of the session, leading to profit booking near intraday highs and dragging the index back toward the day’s lows. Nifty eventually closed with a loss of around 0.23 per cent, ending just above the 23,150 level.

Market analysts noted that the benchmark continues to face rejection near higher levels despite repeated recovery attempts. Angel One said the inability to hold gains indicates that traders remain cautious amid uncertain global cues and persistent resistance around key technical levels.

Bank Nifty once again outperformed the broader market, supported by strength in private sector banks. Despite remaining relatively resilient, the banking index also struggled to sustain upward momentum after encountering resistance near recent swing highs.

The Sensex witnessed a similar pattern. After recovering from early weakness, the index faced selling pressure around last Friday’s highs and its 20-day exponential moving average (20-DEMA), eventually ending the session below intraday peaks.

Among sectoral performers, healthcare stocks stood out as a pocket of strength in an otherwise subdued market. The sector delivered notable relative outperformance even as broader market participation remained limited.

Global sentiment remained mixed. Asian markets traded lower following a weak overnight close on Wall Street, reflecting investor caution. European markets, however, bucked the trend and traded marginally higher during their session.

From a technical perspective, Angel One believes the coming sessions could be critical for market direction. The brokerage highlighted the 23,100–23,000 region as a key pivot for Nifty.

“A decisive break below this support could trigger further weakness towards the 22,700 zone, which coincides with the 78.6 per cent retracement of the April rally, and potentially lower levels thereafter,” the note said.

On the upside, the index continues to struggle near the 23,500 mark, which aligns with the 20-DEMA. Unless Nifty manages to sustain above this resistance, rallies are likely to remain choppy and vulnerable to profit booking.

Market participants are therefore expected to closely monitor these levels while positioning for the next directional move, with technical indicators suggesting a cautious near-term outlook despite pockets of sector-specific strength.

(Disclaimer: This article is only for informational purposes. No trade recommendations are here made.)