Domestic flows are doing the heavy lifting. DII cash of ₹5,748 crore on Friday dwarfs the FII contribution of ₹384 crore, a pattern that has sustained the Nifty's grind from sub-23,000 toward 24,000 over the past month. The index is now compressing between its OI wall band of 23,750–24,350, and whichever boundary breaks first will set the tone through quarter-end. The week's defining offshore event arrives with US Non-Farm Payrolls on Thu Jul 02 (consensus 114K vs prior 172K).

Iran-crude dynamics add a ceiling on sentiment rather than a floor. Brent's bounce to $73.32 — up 1.0% but still anchored below $75 — reflects a ceasefire-relief rally that simultaneously caps further upside in Energy and Oil & Gas, two sectors that already bled 0.68% and 0.87% respectively on Friday. As long as Brent holds below $75, the macro read stays stagflation-lite rather than outright inflationary, which keeps rate-sensitive financials from repricing sharply.

The rotation signal is clear: Auto's 2.25% Friday lead versus Metals' 1.37% decline maps a domestic-consumption-over-commodity trade. PFC-RECLTD merger developments are worth watching for PSU capital-allocation signals. Sectors exposed to global commodity cycles face a harder path while domestically oriented plays — Auto, FMCG, Private Banks — retain the structural tailwind of DII-led accumulation and a VIX still parked in calm territory.