Buy or Sell: The Indian benchmark indices snapped a two-week losing streak, posting nearly a 1% gain for the week ended June 6, buoyed by a dual boost from the Reserve Bank of India (RBI). The central bank delivered a surprise 50 bps cut in the repo rate along with a 100-bps reduction in the Cash Reserve Ratio (CRR), significantly improving market sentiment.
For the week, the BSE Sensex added 737.98 points or 0.9%, closing at 82,188.99, while the Nifty 50 surged 252.35 points to end at 25,003.05. A key driver of this rally was India’s robust GDP growth of 7.4% in the January–March quarter of FY 2024–25, beating market expectations and marking the highest quarterly expansion in the past year.
Globally, equity markets remained buoyant, supported by signs of easing inflation, which further bolstered investor sentiment in domestic markets. Sectorally, the Realty index led the gains with a nearly 10% surge, while Metal and PSU Bank indices rose around 2% each, reflecting strong broad-based participation.
Technical Analysis
Technically, Nifty continues to consolidate within a well-defined range of 24,500 – 25,200, holding this zone for the past two weeks. The index gained momentum post the RBI announcements and touched the upper band of this range at 25,200, which also coincides with the 61.8% Fibonacci retracement of the recent down move.
The previous resistance near 25,200 – 25300 is important level to watch for the next week closing, A sustained close above this level would be significant, potentially opening the door for an upside move toward 25,600 – 26,000 marks, Conversely, a break below 24,500 could indicate a short-term pause or mild correction, especially amidst lingering global uncertainties.
Bank Nifty Outlook
The Bank Nifty index reacted sharply to the CRR cut, rallying nearly 800 points intraday and closing the week at a strong 56,500. The index now faces immediate resistance at the 57,000 marks, while key support is placed around 55,000.
A decisive move above 57,000 could pave the way for a fresh uptrend toward 58,500, while any dip toward 55,000 is expected to attract buying interest.
Conclusion
On a broader time frame, both Nifty and Bank Nifty have ended the week above their respective monthly support levels 23,800 for Nifty and 53,000 for Bank Nifty—signaling sustained bullish sentiment. Long-term structural supports remain at 21,700 for Nifty and 51,500 for Bank Nifty, serving as critical benchmarks for initiating fresh long positions.
Traders are advised to keep a close watch on resistance levels at 25,300 (Nifty) and 57,000 (Bank Nifty), while staying vigilant of global developments and geopolitical factors that may sway market direction in the near term.
Stocks to Buy
1. Bharat Forge Ltd (BHARATFORG): Buy at ₹1,280 – 1,300; Target Price at ₹1,360; Stop Loss at ₹1,230.
2. Mazagon Dock Shipbuilders Ltd (MAZDOCK): Buy at ₹3,390 – 3,410; Target Price at ₹3,600; Stop Loss at ₹3,325.
3. National Aluminium Company Ltd (NATIONALUM): Buy at ₹188 – ₹191; Target Price at ₹205; Stop Loss at ₹174.
Disclaimer: 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.
