The Nifty ends 131 points higher, while the Sensex was up by 444 points ahead of RBI policy
Shrikant Chouhan,
Head - Equity Research,
Kotak Securities
Mumbai, June 5, 2025: Today, the benchmark indices continued their positive momentum. The Nifty ends 131 points higher, while the Sensex was up by 444 points. Among sectors, the Capital Market and Defense indices outperformed, rallying over 2 percent, whereas intraday profit booking was seen in selective PSU banks and media stocks. Technically, on daily charts, the market has formed a reversal formation and is currently trading near the 20-day SMA (Simple Moving Average). We believe that 24,600/81000 would act as a key support zone for traders. As long as the market is trading above this level, the bullish sentiment is likely to continue. On the higher side, the market could move up to 24,900-25,000/82000-82200. However, a breakdown below 24,600/81000 could change the sentiment. Below this level, the market could retest the levels of 24,500–24,450/80700-80500.
Satish Chandra Aluri, Lemonn Markets Desk, adds: Markets extended gains ahead of RBI policy.
Benchmark indices extended gains for second consecutive session on Thursday ahead of the RBI policy decision. Broader mid and small caps also extended gains continuing their outperformance.
Broad-based buying and positive global cues supported sentiment, even as investors treaded carefully ahead of the RBI policy announcement. Pharma led the gains, followed by Telecom and Metals. Realty was the only notable drag, on likely profit booking after recent gains and ahead of RBI decision.
Technically, Nifty opened higher and sustained gains, trading within a tight range as it approached resistance near 24,850-24900. Eventually, it closed around 24750 indicating index remains in a consolidation phase, with momentum indicators suggesting underlying strength but also caution due to lack of follow-through buying ahead of RBI policy meeting. On the downside, expect 24650-24700 acts as strong near-term support.
RBI’s policy announcement on Friday is the most closely watched event, with expectations cantered on commentary regarding inflation, growth and future rate path (room for more cuts).
