RBI Policy Decision: Can Nifty 50 Reach 23,500 and Bank Nifty 55,000?

Market Awaits RBI MPC Outcome as Nifty 50 Remains Range-Bound

The Indian equity market continues to trade cautiously, with the Nifty 50 index holding below its short-term moving averages and subdued momentum indicators signaling caution. However, consistent buying at the support zone of 23,150–23,250 has formed a solid base, indicating strong buying interest at lower levels.

Market Performance

On June 4, the Nifty 50 gained 11 points to close at 23,417, while the Bank Nifty rose 122 points to 54,308. Market breadth favored the bulls, with about 1,608 shares advancing against 1,387 declining shares on the National Stock Exchange.

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| Market Performance | | --- | --- | | Nifty 50 | 23,417 (up 11 points) | | Bank Nifty | 54,308 (up 122 points) |

Nifty Outlook and Strategy

Nifty index remains range-bound and continues to consolidate above the crucial 23,250–23,300 support zone, highlighting strong buying interest at lower levels and the formation of a solid base. Despite multiple attempts, bears failed to push the index below support, indicating downside exhaustion.

The index continues to trade below its 20-DEMA, keeping the broader short-term trend cautious. RSI near 41 suggests momentum remains subdued, though selling pressure has eased considerably. In the options segment, significant Put writing at 23,300–23,000 reinforces support, while heavy Call concentration at 23,500–24,000 continues to cap upside.

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Strategy

As long as 23,250 holds, a pullback toward 23,500–23,700 remains possible. A "buy on dips" approach appears favorable while support remains intact.

| Key Resistance and Support | | --- | --- | | Key Resistance | 23,500, 23,680, 23,850 | | Key Support | 23,300, 23,250, 23,100 |

Bank Nifty - Outlook and Positioning

Bank Nifty needs to reclaim and sustain above 54,400 for an upward move towards 55,000. Until then, consolidation may continue, with immediate key support placed in the 53,800–53,700 zone.

| Key Resistance and Support | | --- | --- | | Key Resistance | 54,600, 55,350, 56,000 | | Key Support | 53,700, 53,200, 52,700 |