Indian equity markets ended the week lower with Nifty closing at 23,366.70, down 49.85 points (-0.21%) after oscillating in a 582-point range during the week, marking a high at 23,733.70 and a low at 23,151.50. According to CNBC TV18, the index ended the week below its 50-week and 100-week moving averages, while volatility remained subdued with India VIX declining 1% to 15.75 despite the corrective undertone. The weekly RSI stands at 39.25 and remains below the neutral 50 mark, reflecting weak momentum setup, while weekly MACD continues to remain in negative territory below its signal line. The broader technical structure continues to remain at an important inflexion point, with Nifty trading below its 50-week and 100-week moving averages while attempting to stabilise above a crucial support area near 23,000-23,100. This zone has emerged as a major line of defence for the markets, with options data suggesting participants are likely to actively protect this area. Sudeep Shah from SBI Securities notes that the index formed a small bearish candle with a minor lower shadow, reflecting a lack of strong directional momentum, with the index remaining largely range-bound in recent sessions.
The Reserve Bank of India's Monetary Policy Committee unanimously retained the repo rate at 5.25% while maintaining its neutral policy stance, as reported by CNBC TV18. However, the central bank lowered its FY27 real GDP growth forecast to 6.6% from 6.9% and raised its inflation projection to 5.1%. To support external financing, the RBI announced a six-point package aimed at boosting capital inflows through government securities, foreign portfolio investments and FCNR(B) deposits. According to CNBC TV18, after opening 62 points higher, the index failed to sustain above the 23,500 mark and witnessed profit booking for most of the session. The rupee posted its strongest single-day gain since April 2, appreciating 85 paise to close at a one-month high of 94.94 against the US dollar, outperforming Asian peers after the RBI's capital-flow measures, aided by a weaker dollar and softer crude oil prices. The Indian equity benchmarks extended declines for the second consecutive week, with both NSE Nifty 50 and BSE Sensex falling 0.7% each this week, erasing weekly gains after the RBI raised its inflation forecast and lowered GDP projections for the ongoing fiscal.
Bank Nifty outperformed the frontline indices during the past week, ending on a positive note despite the overall market decline. As per SBI Securities', the banking benchmark index formed a high-wave candlestick pattern with a long lower shadow, indicating strong buying demand at lower levels, with the pattern suggesting that investors continue to accumulate banking stocks near important support zones. The ratio chart of Bank Nifty versus Nifty has witnessed a consolidation breakout and has started trending higher, indicating sustained outperformance. Currently, the index has largely remained trapped within a broad consolidation range of 52,700 to 55,600 over the past three weeks, according to Bajaj Broking Research. The 52,500-53,000 region represents a critical support area for Bank Nifty, which coincides with the lower boundary of the April 8 bullish gap and the 61.8% retracement of the previous upward move. On the upside, resistance is seen between 55,200 and 55,600, where the 50-day EMA and the upper end of the recent consolidation range converge, with a decisive breakout above 55,600 potentially paving the way for a rally towards 56,500. Analysts at SAMCO Securities note that the next directional move for Bank Nifty is going to be a significant one after a highly volatile session which eventually ended in being the fourth day of gains, with the index forming a high-wave candle with shadows on both sides, reflecting indecision at current levels.
The Nifty IT index fell for the fifth straight day on Tuesday, with the index now trading below the levels from where that 7% upmove began across May 29, June 1, and June 2. Despite positive news emerging on the H-1B visa fee front from the US, most of the IT stocks struggled for momentum on Tuesday as well. A big part of the underperformance of the Nifty has come from IT, with the sector's reversal being such that the index is now trading below the levels from where that 7% upmove began. The other major factor behind the Nifty underperformance has come from HDFC Bank, with such negative sentiment behind India's largest private sector lender that even after the positive reforms announced by the RBI on Monday evening, the stock went nowhere on Tuesday. In the Nifty Bank's 1,100-plus-point upmove on Tuesday, HDFC Bank's contribution was close to zero, with the stock remaining close to its 52-week low levels, thereby keeping the Nifty gains in check. The fact that the Nifty even managed a 100-plus point advance was courtesy of the Nifty Bank, yes, but also due to the sharp bounce seen in index heavyweight Reliance Industries from the lows of the session. The stock managed to snap a nine-day losing streak on Tuesday, with the macro factors appearing to fall in place with crude prices continuing to drop below the $100 a barrel mark, yet there are other reasons that need to fall in place as well for the index to move higher.
The Nifty has formed a second consecutive bearish candlestick pattern on the weekly chart, indicating that the ongoing corrective phase remains intact, according to Bajaj Broking Research. The index has also created a lower high and lower low formation, reflecting continued weakness in the broader trend. The Put-Call Ratio improved from 0.5 to 0.69 during the week, indicating that bearish aggression is gradually easing, though the index continues to trade within a narrow range over the past four sessions. Current F&O positioning indicates a neutral-to-slightly bearish undertone heading into the new week, with put support concentrated around 23,400–23,500 and significant call resistance near 23,700–24,000. The key reason behind the sideways movement is the divergence between heavyweight sectors, with Nifty Bank showing relative strength while Nifty IT continues to underperform, resulting in a tug-of-war that has kept the benchmark range-bound. Nandish Shah of HDFC Securities noted that the Nifty has been consolidating within a narrow 150-point closing range over the past four sessions, indicating consolidation near the lower end of the recent trading band. Near term support lies in the 23,100–23,150 band, while immediate resistance is placed at 23,557, followed by 23,800, with the 23,450-23,550 zone remaining a critical resistance band. Sudeep Shah from SBI Securities adds that the immediate support for the index lies in the 23,230–23,200 zone going forward, whereas the 23,530–23,550 zone will act as an immediate hurdle, with chances of further downside to 23,050 if the index breaches below support.
Indian equity markets are likely to trade in a range-bound to mildly cautious manner on Monday, June 8, 2026, as investors assess the impact of the Reserve Bank of India's latest monetary policy decision, persistent foreign institutional investor (FII) selling and mixed global cues, according to market experts. Market participants are expected to closely monitor key technical levels on the Nifty and Bank Nifty, while stock-specific action could remain prominent amid the absence of major domestic triggers. According to Bajaj Broking Research, Nifty is expected to consolidate within a broad range of 23,000 to 23,550 during the coming sessions, with a decisive move above 23,556 potentially triggering a fresh upward move towards the 23,750-23,800 zone. Siddhartha Khemka of Motilal Oswal expects Indian equities to remain range-bound next week amid a mix of domestic and global triggers, noting that while the RBI's measures to attract foreign capital and the government's tax relief for overseas investors in government securities could support sentiment, market direction is likely to be driven by stock-specific and sector-specific developments in the near term. Despite the subdued close, market experts believe domestic equities could remain largely range-bound in the near term, with stock-specific opportunities likely to drive investor participation. The Economic Times reports that analysts believe a sustained move above 23,500 could revive buying interest and open the door for further upside, while a decisive breakout above 23,860 would strengthen the bullish case, with immediate support at 23,300 followed by 23,000, and resistance at 23,500, 23,800, and 24,100 levels.
