The stock market is expected to open slightly higher on Tuesday, June 3, with investors keeping a close eye on global developments and the upcoming interest rate decision by the Reserve Bank of India (RBI).
As of 8:15 am, Gift Nifty futures were trading at 24,845.5, showing a higher start compared to Nifty50’s Monday close of 24,716.6. This suggests a positive beginning for the market, although traders remain cautious as many stocks to be in focus today.
MARKET TREND REMAINS MIXED
On Monday, both Sensex and Nifty ended the day almost flat, despite falling sharply during early trade. The Sensex had dropped over 700 points but recovered most of the losses by the end of the session.
The mood remained weak due to global concerns, especially around trade tensions between the United States and China, and the ongoing conflict between Russia and Ukraine.
VLA Ambala, Co-Founder of Stock Market Today, said, “On Monday, the benchmark index Nifty traded within a narrow range in the absence of any major news or market triggers. This momentum is likely to continue for another 2 to 3 days.”
She added, “Traders and investors may consider this a breather as a pullback momentum within the ongoing uptrend. Judging by these developments, or the lack thereof, we can expect the Nifty index to gather support between 24,550 and 24,480 and notice resistance around 24,800 and 24,870 in the next intraday session.”
EYES ON RBI POLICY AND INTEREST RATES
One of the key events this week is the RBI policy meeting on Friday. The market is expecting a 25-basis-point rate cut. If that happens, it could help rate-sensitive sectors like real estate, finance, auto and consumer goods. Lower interest rates can make loans cheaper and boost spending in these sectors.
According to Ambala, “The Nifty index is currently trading at its 20-day EMA, which is serving as an immediate support level for swing traders. In this circumstance, we can expect Nifty to trade within a range of 25,000 to 24,300 throughout this week.”
FOREIGN INVESTORS SELL, DOMESTIC BUYERS STAY ACTIVE
Foreign institutional investors (FIIs) sold Indian shares worth Rs 2,589.47 crore on Monday. This marked the second straight day of selling by overseas investors.
On the other hand, domestic institutional investors (DIIs) remained net buyers for the tenth session in a row, showing continued local support for the market.
Asian stock markets were trading slightly higher on Tuesday morning. The US dollar lost some strength due to concerns over US-China trade tensions and geopolitical risks. On Wall Street, US stocks ended higher in a volatile session on Monday, offering some relief to investors worldwide.
ADANI GROUP STOCKS UNDER WATCH
Adani group shares will be closely watched today after the company responded to a report by the Wall Street Journal. The report claimed that US prosecutors were looking into whether the Adani group had imported Iranian liquefied petroleum gas (LPG) through the Mundra port.
The group denied any wrongdoing, saying there was “no deliberate engagement” in sanctions evasion or trade involving Iranian-origin LPG.
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(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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