Today’s Market Prediction: Nifty and Bank Nifty

Today’s Market Prediction on Nifty and Bank Nifty for 9th June 2023: The Indian stock market witnessed a mild setback as the Reserve Bank of India (RBI) left the repo rate unchanged at 6.5% in its policy announcement yesterday. However, the market responded positively initially. But in the latter half of the day, the market reacted negatively in fear of more stringent measures from the RBI to combat inflation.

Concerns about inflationary pressures weighed on investors’ minds. The BSE Sensex closed below the psychological mark of 63,000, while the Nifty dipped below 18,650. Also, the Bank Nifty closed below 44000, which was considered a key area for this week.

The market reaction was not uniform across sectors. Out of 15 sectoral indices on the NSE, only the Nifty metal index was in green. NTPC was the top gainer on the NSE, offering a glimmer of positivity amidst the broader market downturn. However, Grasim, Kotak Bank, and Sun Pharma were the top losers in the Nifty 50.

The realty, media, IT, and pharmaceutical sectors suffered the most significant blows after the RBI policy. Investors remain cautiously optimistic, seeking clarity on the RBI’s future policies and their impact on the markets.

After a long winning streak, the broader market yesterday gave up strength and closed negatively. Nifty midcap 100 and Nifty small-cap 100 declined 0.55 percent and 0.95 percent, respectively.

Today’s Market Prediction: Nifty and Bank Nifty for 9 June 2023

Today Nifty Prediction(9th June 2023)

On the daily chart, the Nifty made a long red candle. So, this appears to be a sign of a pause in the uptrend for the time being. Though the basic structure and trend of the Nifty are still in an uptrend, in the near term, a pullback can’t be denied, looking at the fall after the RBI MPC meeting outcome.

Currently, as per the hourly chart, 18580 seems to be an important level for the bulls. Therefore, any long trades can be held, taking 18580 as a stop loss for intraday today. For today, the target will be 18680–18740–18800.

Below 18580, the structure will become bearish, which will take the Nifty down toward 18520–18460. For sellers in Nifty, 18680 will be the stop loss. But for one who likes to play dipper stop loss, then 18700–18720 will be the ideal level. And the downside target will be 18570–18510–18420.

Nifty Support and Resistance

Today Bank Nifty Prediction(9th June 2023)

The Bank Nifty, similar to the Nifty, displayed a bearish signal on the daily chart with a red candle that engulfed three previous days’ candles. Currently, it is indicating a stronger bearish sentiment compared to the Nifty. Traders who already have short positions may consider holding them, setting the stop loss at 44,120, followed by 44,190. The downside target levels are 43,770, 43,690, and 43,570.

For traders holding long positions in the Bank Nifty, the recommended stop loss is 44,800, and the potential upside range could be between 44,150 and 44,500.

If the Bank Nifty breaks above 44,200 and sustains above this level, it would indicate a bullish structure for today. In such a scenario, the target levels to watch for are 44,350, 44,460, and 44,600, with a stop loss placed below 44,150.

Bank Nifty Support and Resistance

Conclusion

With U.S. stocks closing higher, Indian benchmarks are set to open higher today. Now the only concern will be whether there will be follow-up buying or profit booking after the gap-up opening. So, jumping to the fresh trades after the morning gap-up will be a risky bet either on the long or short sides.

One must observe the market movement at least for half an hour, and the news of Kotak Bank’s block deal of selling 1.66% by the Canada Pension Fund may weigh on the Bank Nifty today. Therefore, there will be an equal chance of a dip in the market today, which will be a chance of fresh entry either long or short as per the levels.

Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.

Chart Credit: Chartink

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