The Indian stock market recently experienced a notable uptick, continuing its ascent as traders prepare for the weekly expiry of contracts. On June 6, 2025, the Nifty 50 index saw an increase of 130 points, closing at 24,750, while the BSE Sensex surged by 443 points, reaching a total of 81,442. Meanwhile, the Bank Nifty index added 84 points and settled at 55,760.
Key contributors to this upward movement included prominent companies like Trent and Dr. Reddy, which showed considerable gains on the Nifty index. On the downside, stocks such as IndusInd Bank, Tata Consumer, and Axis Bank struggled, reflecting a mixed bag in market performance. Notably, trading volumes in the National Stock Exchange (NSE) cash market were up by 6% compared to the previous session, indicating heightened activity among investors.
In addition to the major indices, both Mid-cap and Small-cap indices continued to outshine the benchmark, with the Nifty Mid-cap 100 Index rising by 0.53% and the Nifty Small-cap 100 Index even more impressively soaring by 0.96%. The small-cap index has maintained its upward trajectory for four consecutive days, achieving a four-month high. Market breadth also remained encouraging, with advancing stocks outpacing declining ones, as evidenced by a favorable BSE advance-decline ratio of 1.33.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provided valuable insights into the current market outlook. She indicated that the sentiment in the Indian stock market is sideways, as traders await the outcome of the RBI’s Monetary Policy Committee (MPC) meeting. Parekh emphasized that for the Nifty 50 index to establish a bullish bias, it must break above the crucial 25,000 mark on a closing basis.
Throughout the trading session, the Nifty 50 witnessed significant volatility, with intraday fluctuations taking the index as high as 24,900 before closing near the 24,750 zone. There was noticeable profit booking during the post-lunch session, shedding light on the cautious approach taken by many investors. Parekh stressed that for the Nifty to maintain its momentum, it needs to sustain support near the 24,500 zone while overcoming the formidable resistance at 25,000 levels, which could pave the way for a fresh upward movement.
The Bank Nifty index experienced similar challenges, unable to breach the 56,000 threshold, ultimately closing near 55,750. A decisive breach above this level could signal a breakout from the current trading range, facilitating further moves to the upside. Parekh indicated that the immediate support for the Nifty lies at 24,600 and resistance is set at 25,000, while the Bank Nifty is expected to oscillate between 55,300 and 56,200.
In light of the current market dynamics, Parekh offered her recommendations on stocks that present attractive buying opportunities. She highlighted three stocks that investors should consider for today:
HDFC AMC:
- Buy at: ₹4,866
- Target: ₹5,100
- Stop Loss: ₹4,760
Religare:
- Buy at: ₹230
- Target: ₹250
- Stop Loss: ₹220
- Hindustan Zinc:
- Buy at: ₹474
- Target: ₹500
- Stop Loss: ₹465
These recommendations come in light of Parekh’s assessment of potential upward trends in these stocks. However, it’s essential to note that investment decisions should always be aligned with individual financial goals and risk tolerance. Given the inherent volatility in the markets, investors are encouraged to seek advice from certified financial experts before executing trades.
In conclusion, while the Indian stock market is currently riding a wave of positive sentiment, especially reflected in the mid-cap and small-cap segments, uncertainty still looms, particularly with the forthcoming RBI MPC meeting. As market conditions are volatile and can shift rapidly, remaining informed and analytical is crucial for making sound investment decisions. Investors will want to keep a close eye on market movements, particularly the key support and resistance levels that Vaishali Parekh highlighted, as these will be critical to understanding the future trajectory of the Nifty and Bank Nifty indices.
