Stocks to buy or sell: Indian equity benchmarks, the Sensex and Nifty 50, ended modestly lower on Friday, 5 June, as investors turned cautious after the Reserve Bank of India lowered its growth forecast for FY27 while raising its inflation outlook.
The Sensex slipped 116.67 points, or 0.16%, to close at 74,243.34, while the Nifty 50 declined 49.85 points, or 0.21%, to settle at 23,366.70. The Sensex witnessed heightened volatility during the session, moving in a range of more than 700 points between its intraday high of 74,717.57 and low of 73,988.75.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said the Nifty 50 ended the week on a weak note, closing at 23,366 and registering a decline of 0.77%, while the Bank Nifty remained largely flat, ending at 54,496 with a marginal gain of 0.04%.
According to Dongre, most major sectoral indices declined during the week, by 1% to 3%, reflecting broad-based profit booking and cautious investor sentiment.
On the global front, he noted that market sentiment remains heavily influenced by geopolitical developments, particularly the ongoing negotiations between the United States and Iran. Dongre said a constructive outcome from the talks could help improve risk appetite and stabilise equity markets, while any escalation in tensions could reignite volatility across global financial assets and weigh on investor confidence.
Ganesh Dongre’s market outlook for next week
On the technical front, Dongre added that the Nifty 50 witnessed repeated profit-taking at higher levels, which restricted upside momentum and caused the index to close below its weekly highs. The benchmark also failed to sustain above the crucial resistance zone of 23,800 during the week.
According to Dongr, the immediate support is now placed in the 23,000–23,300 range, while the 23,800-24,000 band continues to act as a significant resistance area. Near-term volatility is expected to remain high, with India VIX rising toward 16by the end of the week. Despite this, the broader weekly structure remains constructive, supported by a pattern of lower lows underlying buying interest. A sustained move above 23,800 would be crucial for confirming trend continuation and could pave the way toward 24,300, thereby strengthening bullish momentum. On the downside, the 23,000–23,300 zone is expected to serve as a strong demand area during any corrective phase.
Bank Nifty
Similarly, Bank Nifty ended the week near 54,000, with modest gains, and is gradually approaching a crucial resistance zone between 56,500 and 57,000, which also closely coincides with its 200-day exponential moving average (EMA). Immediate support for the banking index is seen around 54,000. A decisive breakout and sustained move above the resistance zone could further reinforce bullish momentum in the banking space and provide additional support to the broader market trend.
Overall, market sentiment has turned cautiously optimistic, with investors increasingly favouring a buy-on-dips strategy amid improving technical structures. However, the near-term outlook remains highly sensitive to global geopolitical developments, particularly updates related to the ongoing US-Iran discussions. The coming week is expected to be crucial as traders and investors closely monitor global cues, institutional activity, and macroeconomic developments. Market participants are advised to remain selective in stock picking, maintain disciplined risk management practices, and stay alert to news-driven volatility, as any escalation or resolution on the geopolitical front could significantly influence overall market direction.
Weekly stocks to buy or sell
Buy SBI Life Insurance Company at ₹1,780-1,790; SL at ₹1,745; TGT at ₹1,845
Buy Bharat Electronics Ltd (BEL) at ₹405-410; SL at ₹395; TGT at ₹425
Buy Bajaj Finance at ₹880-890; SL at ₹860; TGT at ₹930
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
