The Gift Nifty indicates a potential gap down opening of 100 points at 23,500, despite positive signals from global markets. The S&P 500 recently closed at a record high, and Japan’s Nikkei has reached new lifetime highs, reflecting ongoing confidence in global growth and earnings momentum driven by technology. This shift suggests that investors are increasingly looking beyond immediate geopolitical issues to focus on economic resilience.
Hariprasad K., a SEBI-registered Research Analyst and founder of Livelong Wealth, commented that markets are entering a crucial phase ahead of the Reserve Bank of India (RBI) policy decision. He noted that after recent volatility, traders are likely to adopt a selective approach rather than pursuing aggressive positions. Factors such as liquidity, growth outlook, and inflation management could play a critical role in shaping short-term market sentiment.
From a market viewpoint, the key issue is whether the late recovery experienced yesterday will encourage follow-through buying. While global cues remain favorable, consistent upward movement may rely on stability in crude oil prices, a reduction in geopolitical tensions, and improved institutional participation. Until these conditions are met, stock and sector-specific opportunities are likely to dominate, rather than broad momentum.
Emkay Global Research’s strategy report for FY27 presents an optimistic consensus estimate of 13.8% EPS growth for the Nifty. The report highlighted encouraging internal results characterized by robust topline growth, solid performance across sectors, and strong cash flows and balance sheets. However, it raised concerns about a slowdown in capital expenditure, which fell to 9% year-over-year. The report concluded that a strong earnings recovery sets the stage for a promising FY27 for Indian equities, although prolonged tensions in the Middle East and potential disruptions in the Strait of Hormuz remain risks.
Analysts predict that the market will favor stock-picking strategies. Prices are fluctuating within a defined range, prompting strategies focused on buying near strong support levels and booking profits or selling near resistance zones. Sectoral rotation continues to be a prevailing theme, suggesting that traders should concentrate on stocks within sectors exhibiting relative strength on specific days for better trading opportunities and potentially higher returns, according to Hitesh Rathi, Technical Analyst at Angel One.
From a derivatives viewpoint, the options market remains range-bound. Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, noted significant call writing at the 23,500 and 24,000 strike prices, indicating overhead resistance, while put writers appear to be defending the 23,300 and 23,500 strikes. The put-call ratio (PCR) stands at 0.99, signaling a balance between bullish and bearish positions. Additionally, the India VIX has sharply declined by 7.42% to 15.31, reflecting easing volatility and supporting the potential for short-covering driven moves in the near term.
Published on June 3, 2026.
