The Indian stock markets are likely to open on a cautious note amid mixed global trends and ahead of the RBI policy announcement. GIFT Nifty indicates a gap-down start, trading at 23,516 with a discount of 14 points from its previous Nifty futures close.

Investors await the Reserve Bank of India (RBI) monetary policy decision later today. The RBI’s Monetary Policy Committee (MPC) is expected to keep the repo rate unchanged. On Thursday, the Sensex rose 13.84 points or 0.02% to settle at 74,360.01, while the Nifty 50 advanced 10.95 points or 0.05% to close at 23,416.55.

The Indian rupee opened marginally higher at Rs. 95.72 per dollar on Friday versus the previous close of Rs. 95.79. Foreign investors (FIIs) net sold shares worth Rs. 4,447 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 4,360 crore on June 4.

Sensex Outlook

Technically, the Sensex has formed a small bullish candle on the daily chart and is witnessing non-directional activity on intraday charts.

“For the bulls, the 74,700 level would act as immediate breakout zones. For the Sensex, key levels would be 75,000 and 75,300. On the flip side, 74,000-73,800 would act as crucial support zones. If the index slips below 73,800, it could retest the levels of 73,500-73,300," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 has continued to show consolidation, recovering from lower levels and sustaining above the 23,400 mark. The index formed a bullish candle on the daily chart, indicating range-bound movement.

According to Bajaj Broking Research, buying interest was seen from the key support zone of 23,200-23,000, which continues to act as a strong base for the index. 

"Going ahead, the index is likely to extend consolidation in the range of 23,000-23,550. Only a move above Tuesday's high of 23,556 will open upside towards the resistance area of 23,750-23,800 levels in the coming sessions, being the confluence of the current week's high and 20 days EMA," stated Bajaj Broking Research.

On the downside, Nifty has key support placed in the 23,200-23,000 range, which aligns with the lower band of the recent consolidation zone.

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Bank Nifty Outlook

On Thursday, the Bank Nifty rose 121.90 points or 0.22% to close at 54,307.85, forming a third consecutive bullish candle on the daily chart, highlighting continuation of the pullback.

Bajaj Broking Research expects Bank Nifty to consolidate in the range of 52,500-55,500, with a breakout or breakdown required for a clear directional trend. Key support is placed in the 52,700-52,500 zone, while resistance is seen near 55,000-55,500 levels.