Sensex, Nifty set for a flat start amid Middle East conflict; Key levels to track on June 20

The fear gauge, India VIX, maintained its downtrend for the fourth consecutive session and remained below all key moving averages, closing 0.14 percent lower at 14.26, indicating some comfort for bulls.

Indian markets may open on a muted note on June 20 as escalating tensions between Israel and Iran keep investors on edge. While US President Donald Trump has hinted at backing an Israeli offensive, his remarks suggesting any action is at least two weeks away have sparked faint hopes of a possible de-escalation. At about 7:40 am, the GIFT Nifty was trading at 24,782, lower by 5 points or 0.02 percent.

In a much-needed breather, oil prices dropped with Brent tumbling toward $77 a barrel, trimming a third weekly gain, while West Texas Intermediate for August traded near $74.

In the previous session, domestic indices saw a choppy session, managing to hover near the flatline in trade, despite heavy selling pressure seen across sectoral indices and the broader markets amid widespread geopolitical concerns.

The Nifty remains trapped in a tight consolidation phase, with neither bulls nor bears able to assert dominance. The daily RSI remains muted at 51, failing to reclaim the bullish 60 mark, which highlights the ongoing range-bound momentum. While the higher high and higher low formation remains intact on the larger timeframe, the current pause near the support zone is crucial. A close below 24,700 could tilt the trend to the downside, whereas a breakout above 25,000 may reignite bullish momentum. In the near term, the index is likely to remain within the 24,600 to 25,000 band, and a meaningful directional move is expected only after a decisive breakout from this range.

"Despite multiple attempts, bulls have been unable to reclaim higher ground on the Bank Nifty, while bears continue to test patience with a gradual drift toward the lower end of the channel. The daily RSI now hovers near 50, reflecting a loss of upward momentum. The index has slipped below the 20-day EMA (placed at 55,880), which now acts as immediate resistance. A decisive breakdown below the channel support could open the gates toward 55,200–55,000, while a move above 56,000 would be required to regain lost strength," Om Mehra of SAMCO Securities said.

The fear gauge, India VIX, maintained its downtrend for the fourth consecutive session and remained below all key moving averages, closing 0.14 percent lower at 14.26, indicating some comfort for bulls.

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, spiked to 1.03 on June 19, compared to 0.80 in the previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.