The India VIX surged 8.57% to close at 14.22 after experiencing significant intraday volatility, marking one of the steepest movements recorded in recent weeks. The volatility gauge began the session at 12.84, unchanged from the previous close, and fell further during morning trade, hitting an intraday low of 12.43. However, by midday, India VIX had slipped below the 12.50 mark, registering a decline of 2.88%, indicating subdued volatility expectations. The subdued trend changed dramatically in afternoon trade as benchmark indices extended losses, with India VIX rebounding to 13.35 by 13:35 IST and surging to 14.02 by 13:49 IST as the Sensex declined 668 points and Nifty fell 219 points below the 23,800 level. The movement marked a significant change in volatility expectations within a single trading session, with the index remaining within its 52-week range between 8.72 and 28.90. Technical indicators showed a neutral trend, while pivot levels indicated resistance at 13.35, 13.87, and 14.22, with support levels at 12.48, 12.13, and 11.61.
The Nifty closed at 23,824 after a sharp 278-point decline, testing crucial support levels near 23,630 as identified by HDFC Securities. The index opened 32 points lower and witnessed selling pressure intensifying post 10:15 AM, tracking weakness in Asian markets. According to HDFC Securities, the Nifty is testing crucial support levels near 23,630 as it faces key technical challenges. The index has reached the gap zone of 23,645–23,817 formed on June 15, 2026, and despite the sharp intraday fall, it has managed to hold above the 200 EMA currently placed near 23,750. Key retracement levels of the prior up move from 23,070 to 24,189 are placed at 23,761 (38.2%) and 23,630 (50%), aligning with the 200 EMA and the gap support zone, thereby strengthening this support cluster. A decisive break below 23,630 could accelerate the decline towards the 61.8% retracement level near 23,500, while the 23,900–24,000 zone is likely to act as an immediate resistance band.
The RBI injected ₹1.41 lakh crore into the banking system through a 7-day variable rate repo (VRR) auction as liquidity slipped into deficit territory. According to PTI, experts attributed the tightening of liquidity to outflows on account of goods and services tax (GST) payments from the banking system. The liquidity entering deficit territory has put pressure on overnight money market rates, with the weighted average call money rate trading at 5.43%, which is 0.18% above the RBI's repo rate. Similarly, the tri-party repo (TREPS) was trading 0.05-0.07% over the repo rate. In recent days, the central bank has been infusing transient liquidity into the banking system as it has come under pressure since outflows of advance tax payments. The RBI has infused transient liquidity of about ₹2.43 lakh crore through variable rate repo auctions of different tenures over the past few days.
The Nifty Midcap 100 and Nifty Smallcap 100 declined 1.05% and 0.48% respectively, snapping their seven-day winning streak. Market breadth weakened sharply with the BSE advance-decline ratio falling to 0.53, the lowest since June 11. Among index heavyweights, Cipla, Power Grid, and Dr. Reddy's Laboratories led the gains, while IT majors Infosys, Wipro, and TCS emerged as the key laggards. On the sectoral front, Nifty Pharma and Healthcare were the only gainers, while all other indices closed in the red. Metals, IT, and PSU Banks led the declines, reflecting broad-based selling pressure. The rupee depreciated by 5 paise to close at 94.73, weighed down by strong corporate dollar demand, weak regional currencies, and prevailing risk-off sentiment, though it outperformed Asian peers supported by capital inflows. Weekly Nifty options expiry activity was also cited as a factor behind heightened intraday movements, with market reports noting that profit booking after recent highs and net selling by foreign institutional investors in the cash segment contributed to fluctuations in benchmark indices.
The sharp reversal in market volatility coincided with growth across India's eight core industries slowing to 0.5% in May, marking the second-lowest expansion in 21 months. The weaker reading raised questions over the pace of industrial activity and came at a time when markets were already navigating expiry-related positioning. Gland Pharma has broken out from a bullish 'Inverted head and shoulder' pattern on the monthly chart and also from a bullish 'Flag' pattern on the daily chart. The stock is showing continuation of an uptrend with rising volumes and is positioned above all key moving averages. Viyash Scientific has broken out from a bullish 'Cup and handle pattern' on the weekly chart, accompanied by rising volumes and above all key moving averages. The weekly RSI is sustaining above 50, while the weekly MACD has reached above equilibrium and signal line. Following the failed attempt to breach the key resistance level of 24,190 in the previous session, the index extended its decline and slipped below the immediate swing low of 23,901, reinforcing near-term weakness.
