Index Update: The Nifty 50 fell 0.68% to close at 24,718.60 but stayed above its 50-day SMA of 24,277.92, maintaining its bullish structure. RSI eased to 50.55, signaling waning momentum. However, the index continues to hold above the crucial 24,600 support. A breakout above 25,200 could revive bullish momentum, while dips may attract buyers. The short-term outlook remains cautiously optimistic, supported by key technical levels and trend resilience.

Macro Update: The rupee weakened to an 8-week low of 86.17 amid renewed Middle East tensions after Israeli strikes on Iran raised oil prices by nearly 10%, worsening India’s trade outlook. Inflation eased to a six-year low of 2.82% in May, offering policy space to the RBI. Progress in U.S.-India trade talks offered slight relief amid global uncertainty.

Top Market Movers: On Friday, Bharat Electronics Ltd (NSE: BEL) led the gainers with a 1.76% increase, closing at INR 394.20 followed by Oil and Natural Gas Corporation Ltd (NSE: ONGC) up 1.46% at INR 251.51, and Tech Mahindra Ltd (NSE: TECHM) which rose 0.89% to INR 1,659.00. On the downside, Adani Ports and Special Economic Zone Ld (NSE: ADANIPORTS) saw the largest drop, falling 2.82% to INR 1,405.00 followed ITC Ltd (NSE: ITC) down 1.69% to INR 413.90 and State Bank of India (NSE: SBIN), which dropped 1.69% to INR 792.35.

Commodity Update: Commodity Update: The U.S. dollar surged along with safe-haven currencies like the yen and Swiss franc after Israel reportedly launched strikes on Iran, according to U.S. officials. Explosions were also reported near Tehran. Gold jumped 1.68% to $3,460.15, silver rose 0.91%, while copper slipped 0.24%. Brent crude soared 7.63% to $74.65, reaching multi-month highs as fears of supply disruptions intensified amid escalating Middle East tensions.

Our Stance: Markets remain on edge amid escalating geopolitical tensions and trade uncertainty. While the Nifty holds key technical support, momentum is weakening. Defensive sectors, particularly defense and energy, are gaining investor interest. The outlook stays cautiously constructive, with buying interest likely on dips, provided global risks don’t escalate further.

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