Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 5

Mint

a day ago

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Thursday, tracking mixed cues from global markets.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,740 level, a premium of nearly 11 points from the Nifty futures' previous close.
On Wednesday, the domestic equity market indices ended higher, snapping their three-day losing streak.
The Sensex rose 260.74 points, or 0.32%, to close at 80,998.25, while the Nifty 50 settled 77.70 points, or 0.32%, higher at 24,620.20.
Here's what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex is still trading below the 20-day SMA (Simple Moving Average) of 81.300, which is largely negative.
'We believe that the current market structure is non-directional, and the intraday formation indicating range-bound activity is likely to continue in the near future. For traders, the key levels to watch are 80,500 and 81,300. A move above the 20-day SMA or 81,300 could see the Sensex rallying toward 81,500 - 81,800. Conversely, a dismissal of 80,500 could accelerate selling pressure, with the index potentially slipping to 80,100 - 80,000,' said Shrikant Chouhan, Head – Equity Research, Kotak Securities.
Nifty 50 witnessed modest upside bounce on June 4 and closed the day higher by 77 points amidst range movement.
'A reasonable bullish candle was formed on the daily chart on Wednesday, that was placed beside the long bear candle of previous session, which is indicating an attempt of upside bounce in the market. Nifty 50 is currently placed within a broader high low range of 24,500 - 25,000 levels and is currently in an attempt of upside bounce from near the lower end of range,' said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the underlying trend of Nifty 50 remains choppy, and further upside above the hurdle 24,850 levels could bring bulls back into action. Immediate support is placed at 24,500 levels.
Bajaj Broking Research said that the Nifty 50 formed a small bull candle which remains enclosed inside previous session price range, signaling consolidation amid stock specific action ahead of the weekly expiry session on Thursday.
'Buying demand is seen emerging around the lower band of the last 16 session range 24,400 - 25,080, we expect the index to extend the consolidation ahead of the RBI monetary policy outcome on Friday. The zone around 24,400 – 24,500 serves as a crucial support area, aligning with the previous breakout zone, recent swing lows, and key Fibonacci retracement levels of the prior uptrend. A decisive break below this 24,400 – 24,500 support band could lead to a sharper decline,' said the brokerage firm.
On the upside, the index faces stiff resistance near 25,050 – 25,080, where the previous two weekly highs have converged, creating a short-term resistance ceiling, it added.
According to VLA Ambala, Co-Founder of Stock Market Today, Nifty 50 index formed an inside bar or bullish Harami candlestick pattern on the daily timeframe, with its RSI at 52- and the 20-day EMA.
'This technical development indicates a potential upward momentum. We could expect Nifty 50 to trade between 24,300 and 25,000 during the middle of the week. For Thursday's weekly expiry, Nifty 50 could find support between 24,500 and 24,370 and face resistance near 24,730 and 24,800 for the next trading session.'
Bank Nifty index rose 76.90 points, or 0.14%, to close at 55,676.85 on Wednesday, forming a doji candle with small shadows on either side, highlighting consolidation ahead of the RBI monetary policy outcome on Friday.
'Bank Nifty index on the Tuesday session reacted lower from the upper band of the last 5 weeks consolidation area 56,000 - 53,500. We believe only a closing above the 56,000 area will signal extension of the up move towards the 56,700 zone in the near term. Failure to do so will signal extension of the last five weeks' consolidation,' said Bajaj Broking Research.
It believes the short-term structure remains constructive with immediate support is placed at 55,000 – 55,200 levels, while key short-term support is seen at 54,000 – 53,500, which coincides with the 50-day EMA, key Fibonacci retracement levels, and the lower end of the established five-week consolidation band.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities said that the Bank Nifty index remains mildly bullish, holding above its short-term moving average.
'However, price action continues to lack momentum, with buyers hesitating to chase highs ahead of the RBI monetary policy outcome later this week. This upcoming event is likely to act as a catalyst for directional resolution, potentially bringing sharp moves and volatility spikes. Unless the index decisively breaks below 55,300, the overall structure favors buying-on-dips, and the downside risk appears limited for now,' Dhameja said.
According to him, a sustained move above the resistance of 56,150 could attract aggressive buying interest, but until that happens, the range trading strategy may remain valid.
'In conclusion, Nifty Bank is poised at a crucial juncture, with technical levels clearly defined. Traders are advised to stay nimble, as any policy-induced surprises could tilt the balance sharply in either direction,' added Dhameja.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.