Trade Setup for June 8: Nifty still in a narrow range amidst multiple headwinds

Friday was a subdued session for Indian equities, with the Nifty remaining range-bound and ending 49 points lower at 23,366.

After opening 62 points higher, the index failed to sustain above the 23,500 mark and witnessed profit booking for most of the session.

For the week, the Nifty declined 0.77%.

The Reserve Bank of India

's (RBI) Monetary Policy Committee (MPC) unanimously retained the repo rate at 5.25% while maintaining its neutral policy stance. The central bank lowered its FY27 real GDP growth forecast to 6.6% from 6.9% and raised its inflation projection to 5.1%.

To support external financing, the RBI also announced a six-point package aimed at boosting capital inflows through government securities, foreign portfolio investments and FCNR(B) deposits.

Among Nifty constituents, Adani Enterprises, Hindustan Unilever and Adani Ports were the top gainers, while Hindalco, Trent and TCS ended among the biggest losers. Sectorally, all indices closed in the green except Metal, IT and Oil & Gas. Media, Realty and Healthcare emerged as the top-performing sectors.

Broader markets mirrored the benchmark's weakness, with the Nifty Midcap 100 and Nifty Smallcap 100 declining 0.35% and 0.06%, respectively.

The rupee posted its strongest single-day gain since April 2, appreciating 85 paise to close at a one-month high of 94.94 against the US dollar. The currency outperformed its Asian peers after the RBI's capital-flow measures, aided by a weaker dollar and softer crude oil prices.

Siddhartha Khemka of Motilal Oswal expects Indian equities to remain range-bound next week amid a mix of domestic and global triggers.

While the RBI's measures to attract foreign capital and the government's tax relief for overseas investors in government securities could support sentiment, Khemka believes market direction is likely to be driven by stock-specific and sector-specific developments in the near term.

On the global front, Wall Street's nine-week winning streak ended with a thud on Friday, as red-hot technology stocks suffered their largest daily decline since ​April 2025 after a hot May jobs report fueled fears of a hawkish policy pivot from the US Federal Reserve.

All three major US stock indexes closed sharply lower, with plunging chip stocks dragging the tech-laden Nasdaq down by its largest one-day percentage loss since April 2025.

Investors will now closely track crude oil prices, the ongoing West Asia conflict, monsoon progress, foreign institutional flows and the impact of the RBI's latest measures for further cues.

Nagaraj Shetti of HDFC Securities said a decisive breakout above 23,500 could pave the way for further gains towards 23,800-23,900 next week. Immediate support is placed at 23,200.

Hitesh Rathi of Angel One said the short-term setup remains constructive above 23,550. A move beyond this level could trigger fresh upside momentum.

However, a breakdown below the 23,200-23,100 support zone could tilt the balance in favour of bears, leading to further selling pressure and potentially dragging the index towards 22,700, he added.

Sudeep Shah of SBI Securities believes the 23,230-23,200 zone will serve as an immediate support area. A breach below 23,200 could pull the index towards 23,050. On the upside, the 23,530-23,550 zone remains an immediate hurdle. A sustained move above 23,550 could revive momentum and push the Nifty towards 23,700.

Nandish Shah of HDFC Securities noted that the Nifty has been consolidating within a narrow 150-point closing range over the past four sessions, indicating consolidation near the lower end of the recent trading band.

He added that the index continues to trade below key moving averages, keeping the positional bias negative. Near-term support is seen in the 23,100-23,150 zone, while resistance is placed at 23,557, followed by 23,800.