_Morning Snippet:- 11th June 2025_ *Index Observation* Nifty has broken out from its 3 week consolidation and now stands at an eight month closing highs. With the index holding above 25050 resistance level for the past 2 consecutive days. This confirms a breakout from the range for higher targets of 25400 / 25600 however the support is far below at 24650. This is because past two days markets have closed lower than its open despite ending in green. Bank Nifty broke out into fresh all-time highs after the monetary policy announcement as the index reclaimed its wall of worry. Outperformance of Bank Nifty is likely to continue for this week’s trade as well as the index resumes further upside towards 57200 / 57600 odd, however fresh longs are likely to provide good risk to reward only on dips towards 56200. Nifty’s weekly expiry is scheduled for tomorrow while the weekly closing on charts is set for Friday. *Interesting Observation* On 24th March 2025, we had flagged a downside setup in India’s 10-year government bond yields, indicating further downside potential until a crucial range 6.3-6.4%. This zone has now been decisively breached, bringing the yields closer to 6.3%. The move opens room for further downside towards the next Fibonacci extension at 5.9%, which also aligns with a long-term trendline support dating back to 2003. This technical breakdown coupled with the RBI’s latest rate cut, strengthens the case for an improving liquidity environment. A falling yield curve, coupled with a lower policy rate, can significantly ease borrowing costs, stimulate credit growth, and support broader economic activity. The rate sensitive sectors are likely to continue its outperformance over broader market in this environment. *DERIVATIVES | Trade Setup* Cash Market Activity FII: ₹ 2,301 crore DII: ₹ 1,113 crore *Week-to-Date (WTD)* FII: ₹ 4,293 crore DII: ₹ 4,616 crore *Month-to-Date (MTD)* FII: ₹ 728 crore DII: ₹ 30,130 crore *F&O Cues* FIIs have added 2k long contracts in last trading session. Their net position now stand at 93k short contracts. In the options segment, the 24800 strike to act as support, while the 25500 strike remains a key resistance.