Wednesday, June 10, 2026, was a volatile session for the Nifty 50 index. After a flat opening, the index saw buying interest in the first half and moved above its 8-DEMA, touching an intraday high of 23,425. However, the recovery failed to sustain. Selling pressure emerged in the second half, dragging the index lower and forcing it to erase all its gains. The Nifty eventually closed near the day's low, down 27.15 points or 0.12%. From the day's high, the index slipped more than 200 points.
Broader Market Showed Weakness
The weakness was sharper in the broader market, where key indices ended with losses of over 1%. This clearly reflected weak market breadth and a lack of broad-based participation.
Selling Pressure at Higher Levels
On the daily chart, the Nifty formed a small-bodied candle with a long upper shadow, signalling selling pressure at higher levels. This price action shows that the index continues to face resistance on every rise. As a result, the index failed to confirm Tuesday's hammer candle, which had suggested a possible bullish reversal. Interestingly, volumes have remained low for the last six sessions, even as the index continues to witness selling pressure near resistance and buying interest around the crucial 23,000–23,100 support zone.
Key Observation: RSI's Change in Polarity
A key point to note is that the index has been moving within the 50% to 61.8% retracement zone of the rally from the April 2 low to the April 21 high. The 14-period RSI also failed to sustain above the 40 mark, indicating a change in polarity, where an earlier support zone is now acting as resistance. The MACD remains below the zero line and continues to decline, while the hourly MACD is close to giving a bearish signal.
Key Levels to Watch for Nifty
Going forward, a close below the 23,000–23,100 support zone could trigger further weakness and open the way for a move towards 22,700. On the upside, the Nifty needs to close above its 20-DMA, placed around 23,554, to regain strength. Sustaining above this level may support a pullback towards 23,700.
For now, traders should avoid aggressive and highly leveraged positions, as the index continues to swing sharply in both directions on alternate days.
Stock to Watch: Pidilite Industries
Pidilite Industries has registered a breakout from a tight three-week consolidation pattern, though the setup is not a textbook one. The stock closed near its previous pivot zone, adding strength to the breakout structure. On the weekly chart, it has also moved out of a falling wedge pattern, followed by a successful retest and bounce.
Wednesday's price move came with higher volume, which adds credibility to the breakout. The Relative Strength line is rising, indicating improving trend strength and outperformance. The stock has also closed decisively above the sloping trendline resistance drawn from its all-time high, which further supports the bullish setup.
Pidilite is currently placed above all key moving averages. The Bollinger Bands are expanding across timeframes, suggesting rising momentum. The stock is trading 7.46% above its 50-DMA, while the moving average ribbon remains in an uptrend. Momentum indicators are also supportive, with the MACD giving a fresh bullish signal.
On the weekly chart, the RSI appears ready to enter into a bullish territory. The KST has also generated a fresh bullish crossover, while the Stochastic RSI continues to remain positive. The Elder Impulse system has formed a bullish bar, adding another confirmation to the ongoing strength.
Overall, the stock has confirmed a breakout setup. A move above Rs 1,515–Rs 1,518 can be seen as positive and may open the way for a test of ₹1,600. If the stock sustains above Rs 1,600, it may extend the move towards Rs 1,644. On the downside, Rs 1,430 should be maintained as the stop-loss level.
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