Index Update:  The Nifty 50 Index closed near 23,405.60, remaining below its 50-day SMA near 23,685.25, reflecting a weak near-term technical structure. Recent price action indicates renewed selling pressure, with the index extending losses and drifting toward the lower end of its recent trading range. The 14-day RSI near 41.41 remained below the neutral mark, suggesting subdued momentum conditions. Immediate support is placed near 23,000.00 and 22,700.00, while resistance levels are seen around 23,700.00 and 24,000.00. A sustained move beyond these levels could help determine the index's next directional trend.

Macro Update: India’s private sector activity strengthened in May 2026, with the HSBC Composite PMI rising to 59.3 and Services PMI reaching 59.8, both marking the strongest expansion since November. Growth was supported by robust demand, accelerating new orders, and healthy business activity, while inflationary pressures remained relatively contained despite elevated input costs.

Top Market Movers: On Wednesday, Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) led the gainers with a 2.46% increase, closing at INR 8,290.50 followed by Tata Motors Passenger Vhcls Ltd (NSE:TMPV) up 2.04% at INR 398.15 and Max Healthcare Institute Limited (NSE:MAXHEALTH)) which rose 1.78% to INR 965.55. On the downside followed Tata Consultancy Services Limited (NSE:TCS) saw the largest drop, falling 8.39% to INR 2,241.70 followed Tech Mahindra Limited (NSE:TECHM) down 6.31% to INR 1,472.30 and HCL Technologies Limited (NSE:HCLTECH), which dropped 5.19% to INR 1,179.00.

Commodity Update: The U.S. dollar strengthened on Wednesday as investors closely monitored developments in the Middle East and awaited key U.S. economic data for further clues on the Federal Reserve’s interest-rate outlook. Gold declined 0.26% to USD 4,512.40 per ounce, silver fell 0.33% to USD 75.30 per ounce, and copper eased 0.18% to USD 14,001.35 per tonne. Meanwhile, Brent crude oil advanced 1.10% to USD 97.01 per barrel amid renewed regional tensions and a sharp decline in U.S. crude inventories.

Our Stance: Despite improving macroeconomic indicators and resilient domestic demand, near-term market sentiment remains cautious as the Nifty trades below key technical levels and momentum indicators stay subdued. Elevated geopolitical tensions and sector-specific weakness may continue to drive volatility, while support from economic growth and services activity could help limit deeper downside risks.

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