Nifty traded with negative bias for the second straight week and plunged by 181.05 points to settle at the level of 23,366.70.The weakness in the index is amid geopolitical tension, uncertainties in the market along with RBI’s revised higher estimate of Inflation. Index took support from lower levels and inched higher amid  solid domestic economic indicators, including stronger GDP, better manufacturing and services activity along with robust industrial production. 

Global sentiment remains mixed, with stronger industrial activity in China, but the Eurozone reported higher inflation and a slowing economy.

RBI Monetary Policy Update
The RBI governor chairs the Monetary Policy Committee that unanimously voted to keep the interest rate unchanged at 5.25%. The standing deposit facility rate remains unchanged at 5%, while the marginal standing facility rate and the bank rate continue to be at 5.50%. RBI showed concern of Inflation and ongoing oil crises due as the Brent crude continued to be over $100, thus increasing the inflation target at 5.1% for FY27 higher from the previous estimate of 4.6%. While GDP projection for FY 27 was reduced to 6.5%-6.6%, from the previous estimate of 6.9%.

Economy at Glance
Indian Market got some boost, restricting index to 23,000 level was that the government met its fiscal deficit target of 4.4% of GDP, reinforcing economic health. Second booster for the index was the provisional GDP number,which  estimated that India’s real GDP growth accelerated to 7.7% for FY26, amid a resilient 7.8% expansion in the fourth quarter of FY26.

For the week ahead
Domestically, the index would get a direction, depending on the update on the Middle East tension, which is yet to be resolved as no peace deal has yet been signed. Further Inflation numbers for the month of May would be released. Along with key economic numbers FII’s interest in the market which is consistently on the selling side for the last 11 months along with performance of INR, would give further cues to the market.

NIFTY WEEKLY
Nifty 50 traded for the second consecutive week with negative sentiment amid uncertainty in the global market and continuous weakness in Rupee.Index has fallen below its crucial support of 250, and touched the weekly low of 23,151.50. But the Index rebounded to settle the week at  23,366.70. For the index to see any upside it must trade above the mark of 23,500 and must sustain above the same.However, Index if fails to reach for 23,500 and slips below 23,200, then Nifty50 could reach the downside level of 22,900. 

BANK NIFTY WEEKLY
Bank Nifty traded with subdued momentum and reached the low of 53,027.15, but amid some strength in the INR gave some support to the Index and went up to settle higher at the level of 54,496.25 level.Thus, for further upside in the index, it must breach the upside resistance of 54,860. Decisive breach of this given level , would open the door for the upside destination of 55,500. But if the index falls below 53,000, then  we may see the index going towards the downside destination of 51,800.

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