Several banks are closed in various parts of India due to the celebration of Eid-ul-Adha, popularly known as Bakrid, on June 6. It is a public holiday in a few states as well. But does it mean the Indian stock market is closed too? In the previous session, Sensex and Nifty climbed, extending their second consecutive winning streak, driven by FIIs buying and expectations of a 25 basis point repo rate cut on Friday.
Stock Market Holiday On June 6?
As per both BSE and NSE holiday lists, June 6th is not a trading holiday. There are no special holidays for the market in June month.
Hence, trading will be available in equities, equity derivatives, derivatives, bonds, commodity markets and currency, among other market-related instruments on Friday.
Sensex, Nifty:
On Thursday, June 5th, Sensex closed at 81,442.04, up by 443.79 points or 0.6%. While Nifty 50 surged by 130.70 points or 0.53% to end at 24,750.90.
Explaining the market performance, Prashanth Tapse, Senior VP (Research), Mehta Equities said, Nifty extended its winning streak to two days, buoyed by FII buying and hopes of a 25 bps repo rate cut in Friday's RBI policy. Sensex gained 444 pts to close at 81,442, while Bank Nifty rose 84 pts to 55,761. Broader markets joined the rally with Nifty Midcap 50 up 0.63% and Smallcap index up 0.96%. Realty stocks led the charge, with the Nifty Realty Index up 1.75%. India VIX eased over 4% to 15.08. Key Nifty gainers included ETERNAL (+4.53%), TRENT (+3.15%), and DRREDDY (+3.05%), while INDUSINDBNK (-1.39%) and TATACONSUM (-1.07%) were among the top losers.
Sensex, Nifty Prediction On June 6:
All eyes are now on the RBI's rate decision due Friday at 10:00 AM, with Nifty facing resistance at 25,000-25,117 and strong support at 24,500. Trend remains neutral, said Tapse.
Also, Satish Chandra Aluri, Lemonn Markets Desk said, 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)."
RBI has reduced repo rate by 50 basis points in previous two policies of 2025. Currently, repo rate is at 6.5%.
Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services said, "There will be continued focus on other rate-sensitive sectors as well, which include PSU Banks, NBFCs and Auto. Pharma and Healthcare indices rose over 1% each, driven by optimism around a potential India-US trade agreement as American officials visit New Delhi for a two-day meeting. The US 10-year bond yield eased to 4.36% amid signs of a slowing US economy, a near-term positive for emerging markets like India. Overall, we expect markets to consolidate with a positive bias, tracking global markets, macro-economic indicators and progress in US-India trade negotiation."
"Despite global uncertainty, strong indicators of economic and corporate earnings growth are encouraging investors to adopt a buy-on-dip strategy. Moreover, markets are attentively awaiting upcoming central bank decisions, with a 25-bps rate cut anticipated from both the ECB and RBI," Vinod Nair, Head of Research, Geojit Investments also said.
However, RBI's commentary on mixed global cues is seen to be crucial apart from rates decision.
"With all eyes now on the outcome of the upcoming MPC meeting, the continued outperformance of rate-sensitive sectors such as banking, realty, and auto appears to be factoring in a 25 bps rate cut. However, the RBI's commentary will be crucial, given the mixed global cues amid a favorable domestic environment," Ajit Mishra - SVP, Research, Religare Broking said.
Technical Outlook On June 6:
"On the index front, the Nifty has reclaimed its short-term moving average (20-DEMA), and its ability to sustain above this level will be critical for any further rebound. Otherwise, profit-taking may resume. We continue to recommend a focus on theme-specific opportunities while maintaining prudent position sizing due to the mixed market signals," said Mishra.
Technically, on daily charts, Shrikant Chouhan, Head - Equity Research, Kotak Securities said, "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."
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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