Dalal Street will likely see a quiet start for the Friday, June 6 session, as indicated by the GIFT Nifty index, which is trading at the flatline.
At 7.50 am, the GIFT Nifty index was quoting 24,847.5, lower by 7 points or 0.03 percent.
Markets held firm in the previous session, with the Nifty and Sensex ending strong despite coming off intraday highs, as a pharma and realty rebound lifted sentiment ahead of the RBI's MPC meet tomorrow. The real spark came from the broader market, where mid- and small-cap stocks stole the show, outperforming the benchmarks. Adding to the cheer, India VIX cooled over 4 percent, signalling easing volatility.
The RBI’s Monetary Policy Committee (MPC) meeting today is unlikely to move equity markets much, say experts Moneycontrol spoke to, as no major surprises are expected in the repo rate or policy stance. Instead, stocks are likely to be driven by earnings and global cues.
Here are the key levels to track in today's session
On the daily charts, the Nifty 50 formed a bullish candle with a long upper shadow on the daily charts, indicating an upside bounce amid volatility and selling pressure at higher levels. The index needs to sustain above the midline of the Bollinger Bands for a further upmove, while the trading volume was better than in the previous session. The RSI, at 55.14, is inclined upward, while the Stochastic RSI showed a positive crossover in the lower zone.
India VIX, the volatility index, eased by 3.51 percent to 16.55, yet remains above the psychological comfort zone of 15. The elevated VIX levels continue to reflect underlying market uncertainty and indicate the potential for erratic, whipsaw-driven price action in the sessions ahead.
"Nifty remains under bearish influence, with repeated selling on intraday rallies and lower-level resistances being aggressively defended by call writers. The close below the 20-DEMA and declining momentum suggest that bulls are losing control," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities
He added that a sustained move above 24,850 is necessary to revive positive sentiment. Until then, the market is expected to remain sideways with a negative bias. On the downside, if 24,500 is breached decisively, the index could face accelerated selling pressure toward 24,300.
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