Stock Market Prediction For This Week 5-9 June 2023

Stock Market Prediction(5th to 9th June 2023): Though global markets did very well last week, Indian equity markets ended flat. After the U.S. debt ceiling deal and strong job data, the global equity market jumped. Especially, the Nasdaq hits a 13-month high and the Dow Jones surged 700 points on Friday.

Despite the impressive global rally last week, the Indian stock market ended a muted week. But the broader market did exceptionally well compared to the benchmarks. Now the coming week will be interesting with no major events globally. So everything must rely on domestic cues and FIIs’ flows to the Indian market.

The Nifty 50 index gained a modest 0.2 percent last week. But the Nifty Bank index experienced a slight decline of 0.17 percent. Although both indices had relatively flat returns in percentage terms, the broader market performed better than these benchmarks. Notably, the Nifty small-cap 100 index delivered an impressive return of 3.07 percent, while the Nifty midcap 100 index saw a respectable increase of 1.61 percent.

Indian Stock Market Prediction For This Week 5-9 June 2023

Nifty 50 Prediction(5th to 9th June 2023)

According to the chart, the 4-hour chart appears to have a double-top formation. Therefore, in theory, it must deliver a pullback rally up to the level from where it began a rally.

According to the chart, the level at which the movement broke on a closing basis to commence was 18200. Thus, there is a good likelihood of a pullback unless and until it surpasses its high from the previous week of 18662.45.

Nifty will currently find immediate support at 18460, 18200, and 18040–18000. 17900–17860 will serve as the final support for the coming week.

Nifty will face immediate resistance on the upside around 18600, followed by 18660. A close above 18660 will likely lead to new highs on the way to all-time highs.

For Nifty to continue rising above 18700, it must maintain its place above 18600 for at least the upcoming week. The fact that Nifty is still trading above last week’s low (18464.55) is a positive. There is a possibility of a pause in decline as long as it continues to rise above it. Only if the previous low is broken will there be new downside concerns.

Nifty may reach the level of 18200 next week if it breaks the low from the previous week. Therefore, as of right now, levels 18460 and 18660 will be crucial to watch on the downside and upside, respectively.

Support and Resistance Levels of Nifty

Bank Nifty Prediction(5th to 9th June 2023)

Bank Nifty has already accomplished its targets, setting a new all-time high last week at 44498.5, surpassing the previous record of 44151.8. After reaching all-time highs, Bank Nifty halted its uptrend and hit a low last week at 43706.15. But after visiting that area a few times, Bank Nifty bounced up above 44000.

The most interesting thing was that, on a weekly closing basis, Bank Nifty was unwilling to close above 44000. So far, it appears that Bank Nifty is more negative than Nifty based on setup and price action, at least until it trades below the pivotal level of 44000.

Right now, Bank Nifty will encounter immediate resistance at 44200, which will be followed by 44450-44500. A fresh upside range over 45000 will only be opened by breakouts above 44500 the following week. The immediate supports on the downside will be at 43700, 43500, and then 43300, which is a crucial level.

Support and Resistance Levels of Nifty Bank

RBI Monetary Policy

Investors and market participants are eagerly awaiting the outcome of the upcoming Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting scheduled from June 6 to 8, 2023. Experts believe that the Indian economy’s positive performance is reflected in better-than-expected Q4FY23 GDP data. Also, strong GST collections, and controlled inflation, have positioned the Indian stock market at the sweetest spot. 

They anticipate that the RBI will likely maintain the same interest rates. A status quo in rate hikes is expected, while any indication of a near-term rate cut could positively impact Indian stocks, especially in the manufacturing and financial segments. According to the market experts, the market has already factored in the outcome of the RBI MPC meeting.

Conclusion

The Indian market started to decouple slowly from the positive global markets as benchmarks were already at multi-year highs. So, for now, the Indian market will try to react to the RBI MPC meeting outcome, USD/INR rates, and most probably crude oil prices in the near term. These developments will probably set a path for the Indian market this week.

As long as the broader market’s constituents continue to rise relative to the benchmarks, investors may still place bets on them.

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

Chart Credit: Chartink

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