Trade Setup June 19: Nifty closes below key support at 24,850; market awaits Fed cues for direction

India’s benchmark indices extended their decline for a second consecutive session on Wednesday, with the Nifty 50 slipping below a key support level. The index closed 41.35 points or 0.17% lower at 24,812.05, while the BSE Sensex shed 138.64 points or 0.17% to end at 81,444.66.

Shrikant Chouhan, head of equity research at Kotak Securities, cautioned that weak market sentiment is likely to persist if Nifty trades below 24,800. He identified 24,725 as a critical support zone, warning that a breach could push the index down to 24,500. However, Chouhan added that if the Nifty crosses above 24,900, it could trigger positive momentum, with potential upside towards 25,000–25,100.

Rupak De, senior technical analyst at LKP Securities, echoed similar views. “A decisive reclaim of 24,850 may ignite a rally toward 25,000 and higher. But failure to cross this mark could drag Nifty back to 24,500,” he said, noting that the U.S. Federal Reserve’s decision could significantly influence both global and Indian market sentiment.

The day's decline was led by major stocks like ICICI Bank and Tata Consultancy Services, adding pressure on broader indices. As traders eye the Fed’s policy outcome, the next few sessions could determine whether markets recover or slide further.