Stock Market Outlook Today, June 8: Sensex, Nifty Likely to Trade Range-Bound Amid RBI Pause and FII Outflows

Indian equity markets are likely to trade in a range-bound to mildly cautious manner on Monday, June 8, 2026, as investors assess the impact of the Reserve Bank of India's latest monetary policy decision, persistent foreign institutional investor (FII) selling and mixed global cues.

Stock Market Outlook Today, 8 June 2026; Sensex, Nifty Prediction for Monday

Market participants are expected to closely monitor key technical levels on the Nifty and Bank Nifty, while stock-specific action could remain prominent amid the absence of major domestic triggers.

The domestic equity market witnessed a volatile session on June 5 as traders reacted to the RBI's latest monetary policy announcement. The central bank decided to keep the repo rate unchanged at 5.25% while maintaining its neutral stance. However, the RBI's decision to revise its inflation outlook upward and lower GDP growth projections tempered investor optimism.

As a result, the NSE Nifty 50 declined 49.85 points, or 0.21%, to close at 23,366.70, while the BSE Sensex slipped 116.67 points, or 0.16%, to settle at 74,243.34.

Despite the subdued close, market experts believe domestic equities could remain largely range-bound in the near term, with stock-specific opportunities likely to drive investor participation.

"Indian equity markets are expected to remain range-bound next week amid a mix of domestic and global cues. While the Reserve Bank of India's measures to attract foreign capital and the government's tax relief for foreign investors in government securities may support sentiment, we expect market performance likely to be driven by bottom-up stock and sector-specific action in the near term," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Nifty Prediction Today, June 8: Key Support and Resistance Levels to Watch

According to Bajaj Broking Research, Nifty has formed a second consecutive bearish candlestick pattern on the weekly chart, indicating that the ongoing corrective phase remains intact. The index has also created a lower high and lower low formation, reflecting continued weakness in the broader trend.

Analysts expect Nifty to consolidate within a broad range of 23,000 to 23,550 during the coming sessions. A decisive move above 23,556, which marks last week's key swing high, could trigger a fresh upward move towards the 23,750-23,800 zone.

The brokerage highlighted that buying interest has repeatedly emerged around the 23,200-23,000 support region. This area coincides with multiple technical indicators, including the lower band of the April 8 bullish gap, the lower end of the recent consolidation range and the 61.8% retracement level of the previous rally.

However, if Nifty breaks below the crucial 23,000 mark, selling pressure could intensify and drag the index towards the 22,600 level in the weeks ahead.

On the upside, the 23,750-23,800 zone remains a significant hurdle as it coincides with the 50-day exponential moving average (EMA) and a key trendline resistance. A sustained breakout above 23,800 could open the door for a move towards 24,100.

Bank Nifty Outlook: Support Near 52,500 Remains Crucial

Banking stocks may continue to remain in focus this week after Bank Nifty displayed resilience despite broader market volatility.

Bajaj Broking Research noted that the index formed a high-wave candlestick pattern with a long lower shadow, indicating strong buying demand at lower levels. The pattern suggests that investors continue to accumulate banking stocks near important support zones.

The index has largely remained trapped within a broad consolidation range of 52,700 to 55,600 over the past three weeks.

"We expect the index to extend the same and only a breakout or breakdown will signal the next directional momentum in the index," said Bajaj Broking Research.

The brokerage identified the 52,500-53,000 region as a critical support area for Bank Nifty. This zone represents the lower boundary of the April 8 bullish gap and the 61.8% retracement of the previous upward move.

On the upside, resistance is seen between 55,200 and 55,600, where the 50-day EMA and the upper end of the recent consolidation range converge. A decisive breakout above 55,600 could pave the way for a rally towards the 56,500 level in the coming weeks.

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