Tomorrow Market Prediction: Nifty & Bank Nifty(6th June 2023): Today, Nifty (18,593.85) and Bank Nifty (44,101.65) closed higher as expected. After the strong rally in the U.S. market, the Indian equity market also participated. Bank Nifty was able to settle just above 44100 while Nifty 50 narrowly missed closing above 18600.
Nifty auto and private banks led the rally and helped benchmarks maintain continuous upward traction for two consecutive sessions. Tata Motors and M&M hit 52-week highs, which helped the Nifty Auto index surge over 1 percent. On the NSE today, M&M was the top gainer with gains of 3.99 percent. Index-wise, Nifty Auto was the top sectoral gainer, followed by Nifty Media.
The broader market performance was sluggish today as compared to the benchmarks despite a rally in a few counters. Nifty Midcap 100 and Nifty Smallcap 100 gained 0.14 and 0.36 percent, respectively.
Tomorrow Market Prediction: Nifty & Bank Nifty(6th June)
Tomorrow Nifty Prediction
Primary Trend of Nifty: UP
The chart structure of the Nifty 50 is bullish, with the primary trend being up. The hourly and daily charts of the Nifty maintain an upward trajectory. But on the higher levels, we can witness profit booking as well. As of now, there is no weakness in the Nifty, though it should sustain above 18600 for a rally tomorrow.
The immediate resistance level for Nifty will be at 18630-18640 where 18640 was today’s high. The next major hurdle will be 18660-18670. Any move beyond this level will bring 18700 tomorrow.
On the downside, the immediate support will be 18550-18500. Breaking below the floor of this level will bring a new range that can take it down to levels 18480-18450.
The range of Nifty appears to be narrow for tomorrow, so selling on the bounce up to 18650 and buying on dips up to 18550 will work. Until Nifty breaks out on any side, we can play for small movements.
For tomorrow the upside range of Nifty will be 18630-18700 and the downside range will be 18560-18500. Point to be noted, these levels will be for normal market conditions only.
Tomorrow Bank Nifty Prediction
Primary Trend of Bank Nifty: UP
Though the basic structure of the Nifty Bank resembles that of the Nifty 50, the Nifty Bank is slightly negative in comparison to the Nifty 50. As long as the Bank Nifty trades above 44100, there won’t be any issue maintaining its upside journey. But for a strong, sustained rally, it has to maintain a level above 44150 tomorrow.
The immediate resistance and support for the Bank Nifty will be 44200 and 43900, respectively. The range of the Bank Nifty for tomorrow is also narrow, like the Nifty. Only a breakout above today’s high (44266.15) will open a new upside range up to 44400 tomorrow.
Similarly, on the downside, it has to break today’s low (44,074.20) for a decline below 44000, which can revisit the range 43900-43800.
Considering the very small range in the Bank Nifty, it will probably consolidate again until it breaks any major level, as mentioned.
The upside and downside ranges of Bank Nifty for tomorrow will be 44150-44400 and 44000-43800, respectively.
Global Market Update
Today, Asian markets performed well, with the Nikkei 225 hitting a 52-week high (32,217.43) with gains of a massive 2.2 percent. Other major Asian peers like the Hangseng and Kospi indexes moved above 0.5 percent today, whereas the Shanghai and Taiwan indexes closed flat.
In Europe, the CAC and DAX are falling by 0.9% and 0.5%, respectively, but the FTSE is trading almost flat.
Like other global markets, the U.S. market also trades mixed, with the Dow Jones declining by 0.35 percent, the S&P 500 by 0.15 percent, and the Nasdaq Composite up by 0.5 percent at IST 9.3 PM.
Today’s rally in Brent (1.5%), copper (1.45%), and gold (0.35%) is also witnessed, where DXY and U.S. bonds are trading almost flat. After a surprise production cut decision by OPEC+, Brent crude futures are extending their gains.
Conclusion
After examining the charts of the Nifty and Bank Nifty, it appears that tomorrow could be a day of consolidation, with individual stocks potentially driving movements. For a more definitive trend, it would be necessary for the U.S. market to close the day either higher or lower within a significant range.
Furthermore, based on market data, it seems that option writers are likely to benefit from tomorrow’s market conditions. On the other hand, option buyers may need to wait until there is a breakout in either direction before experiencing favorable outcomes.
Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.
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