Nifty 50, Sensex Outlook: Indian Stock Market Expectations Ahead of RBI Policy Announcement on June 5

Indian Stock Market Anticipates Muted Opening Ahead of RBI Policy Announcement

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a muted opening on Friday, tracking a mixed trend in global markets. The trends on Gift Nifty indicate a tepid start for the Indian benchmark index, trading around 23,521 levels, a premium of nearly 9 points from the Nifty futures' previous close.

Investors will closely watch the Reserve Bank of India (RBI) monetary policy decision later today. The RBI's Monetary Policy Committee (MPC) is largely expected to keep the repo rate unchanged, while the central bank's commentary on inflation, liquidity conditions, crude oil price risks, and the rupee will be keenly monitored.

On Thursday, the Indian stock market ended the flat with a positive bias, with the benchmark Nifty 50 holding above 23,400 levels. The Sensex rose 13.84 points, or 0.02%, to close at 74,360.01, while the Nifty 50 settled 10.95 points, or 0.05%, higher at 23,416.55.

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Market Predictions for Sensex, Nifty 50, and Bank Nifty

Sensex Prediction

The Sensex has formed a small bullish candle on daily charts, and on intraday charts, it is witnessing non-directional activity. Traders are waiting for a breakout on either side. For the bulls, the levels of 74,700 would act as immediate breakout zones. Above these levels, key levels for Sensex would be 75,000 and 75,300. On the flip side, 74,000 - 73,800 would act as crucial support zones.

Nifty 50 Prediction

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Nifty 50 index formed a bullish candlestick pattern on the daily timeframe, indicating buying support emerging at lower levels. A long bull candle was formed on the daily chart, after the doji type candle formation on Wednesday. Technically, this market action indicates emergence of buying from near the key lower supports. Lower tops and bottoms is observed on the daily chart.

Immediate support is placed at 23,300. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty 50 is expected to bounce back further towards 23,900 by next week.

Options Data

Bank Nifty Prediction

Bank Nifty index ended 121.90 points, or 0.22%, higher at 54,307.85 on Thursday, forming a third consecutive bullish candle on the daily chart with a higher high and a higher low, highlighting continuation of the pullback from the key support area amid stock specific action.

Bank Nifty index continues to trade below its key moving averages. The daily RSI also indicates a lack of strong directional bias, suggesting sideways momentum in the near term. From a technical standpoint, the zone of 54,700 - 54,800 is likely to act as an immediate resistance for the index. A decisive move above the 54,800 mark could trigger an extension of the pullback rally, potentially pushing the Bank Nifty index towards 55,400.

On the downside, the zone of 53,900 - 53,800 is expected to provide strong support. Bajaj Broking Research expects the Bank Nifty index to extend consolidation in the range of 52,500 - 55,500, and only a breakout or breakdown will signal directional movement in the index.