Indian stock market may consolidate further; Nifty may slip to 23,500, says Rohit Srivastava of Indiacharts

The Indian stock market is undergoing a correction, which may continue for some time. According to Rohit Srivastava, the founder and market strategist at Indiacharts.com, the benchmark Nifty 50 could retest the levels of 24,000-23,500 on the downside.

"Nifty is unlikely to give a decisive breakout any time soon. The index 50 is undergoing the first correction since April 2025, which can take it back to 24,000-23,500 in the near future before things get better. A breakout may only occur after August 2025," said Srivastava.

“Bank Nifty has resistance at 56,070. Once it breaks the support at 55,380, it may go down to 53,500,” Srivastava said. 

On Thursday, June 19, the Nifty 50 traded lacklustre in the morning session after opening at 24,803 against its previous close of 24,812. Around 10:20 AM, the benchmark index was 0.10 per cent up at 24,837.

The domestic market has been in a range in recent times, struggling to give a decisive breakout amid tariff-related uncertainties, geopolitical tensions, foreign capital outflow, and stretched valuation.

Indian stock market: Recovery may be far

While factors such as the RBI's ongoing rate cuts, expectations of a healthy monsoon, and a strong economic growth outlook support a positive medium-term market view, the domestic market currently lacks fresh near-term triggers to drive further gains.

Geopolitical tensions have dimmed the prospects of an imminent reversal in the Indian stock market.

A combination of factors, including geopolitical tensions and a tight liquidity situation in the US due to elevated interest rates, could delay recovery in the Indian stock market to the later part of the year.

"While domestic liquidity conditions are favourable, US liquidity remains tight. Geopolitics is hurting the near-term outlook, too, especially with the US threatening to enter the war. This can delay the recovery in markets into the third quarter of the year," said Srivastava.

The trajectory of the domestic market will depend on the upcoming earnings season, the evolving geopolitical scenario, and the possibility of a trade deal with the US.

Additionally, the progress of the monsoon, key macroeconomic indicators, the movement of the US dollar, bond yields, and the stance of foreign portfolio investors (FPIs) on India will also play a crucial role in shaping the Indian stock market going forward.

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