Week ahead in Equity

Nifty managed to trade in green after two continuous weeks of sluggish momentum amid ongoing geopolitical turmoil. However, Index by the later half of the week, gained momentum to touch the weekly high of 23,645.35 with easing tension between US-Iran as there seems to be some progress on the peace talk with US president Trump admitting on completing strategic strikes on Iran, and progressing through the peace talk.As per the report further also Iran supreme leaders have agreed to go progress on peace talk, though there is not yet any official confirmation on the same from Iran.But hopes of progress has kept the market momentum alive. Further on the domestic front to strengthen the INR, measures announced by the RBI have also supported the index to breach the level of 23,600. Further softness in crude oil below the $90, also supported the positive momentum in the market.

RBI Measure to strengthen INR
The RBI introduced a Dollar Forex Swap for external borrowing, which are eligible to be raised by public sector undertakings and overseas foreign currency borrowings raised by authorised dealer banks. The facility would be available , for minimum maturity of three years, for borrowing, this will be available for the inflows received till the 31 December, 2026.This swap will be priced at 1.50% per annum, compounded semiannually with a tenure of 5 Years. The Reserve Bank of India also launched a forex swap facility for fresh Foreign Currency Non-Resident (Bank) deposits mobilised by banks. 

For the week ahead
Domestically, the index would get a direction, depending on the update on the Middle East tension, which has got some hopes with progress in the agreement, but the deal is yet to be signed. Further performance of INR would also be a key to index movement. On the economic front,  wholesale price inflation of India would be released, and unemployment would also be released on 16 June,2026.Further Current account deficit number would give further insight about economic health of India, would be reported on 16 June, 2026. Also Minutes of RBI monetary policy along with Forex reserve would be some key economic events to watch out for the week.

NIFTY WEEKLY

 Nifty 50 after two continuous weeks of weakness, managed to trade in green and pull itself  up from the low of 23,070 to settle high at 23,645.35. Index is seen strengthening with RSI in changing higher to 42.94 indicating higher probability of strength in the market. Index could further reach towards the mark of 24,000, if it manages to breach the psychological level of 23,800 and sustains above the same. On the contrary, if index fails to reach for 23,400, then the trading range for the week 23000-23,650.

BANK NIFTY WEEKLY

Bank Nifty after trading within a range of 52,900-55,630, for the last five consecutive weeks, managed to breach its resistance and went up to the high of 56,867.10.Index has also manage to surpass the middle band of the Bollinger band in weekly chart at 56,063, further confirming strength in the index. Also, RSI at 53 is also indicating scope for further upside in the index. Thus, if Banking index manages to break the upside resistance of 57,250, further euphoria could be seen in the index towards the level of 58,590.

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