Weekly Nifty 50 Trading Strategies and Technical Outlook

In the first week of June 2025, from 2nd June to 6th June, the Indian stock market remained positive. The positive move was a result of the Indian central bank delivering a larger-than-expected repo rate cut. 

In this weekly Nifty 50 technical analysis blog, we will see what technical signals investors should watch. 

Market Recap: June 2 – June 6, 2025. 

Last week, the Nifty 50 index closed 1.02% higher. In the current week, as of Tuesday, June 10, 2025, the index is continuing its positive move. Here are the open, high, low, and close levels for the index for last week: 

Here is the movement for other indices for the previous week: 

All the indices performed positively and opened on a positive note in the current week. 

Reasons for the Positive Performance 

The reasons for positive performance last week are: 

• FII/DII Activity: The domestic institutions were net buyers of equities last week. They purchased ₹25,510 crores worth of equities more than they sold. Although foreign institutional investors were net sellers of equities worth ₹3,643 crores, this was offset by domestic buying activity. 

• RBI Monetary Policy: The RBI lowered the repo rate by 50 basis points from 6% to 5.5%. This was a larger-than-expected rate cut. The RBI gave a GDP growth projection of 6.5% for FY26. 

The Indian stock market trends remained positive following the announcement. 

There has been no major geopolitical event directly affecting India in the past week despite rising tensions on the Russia-Ukraine front. 

Weekly Nifty 50 Technical Analysis 

Let us understand the price action of the Nifty 50 index – 

Source: Tradingview, Nifty 50, 30-minutes chart showing support and resistance. 

You can see the 30-minute chart of the Nifty 50 index, showing price action data from May 12, 2025, to June 10, 2025. In this period, the index is clearly in a sideways trend. 

The key Nifty 50 support and resistance levels are: 

• 25,000 – 25,100: Resistance zone 
• 24,500 – 24,600: Support zone

Although the index as of Tuesday, June 10, 2025, is trading above the resistance zone (red arrow), the price action is not significant enough to call it a decisive breakout. 

Source: Tradingview, Nifty 50, daily chart showing bollinger band indicator. 

On a slightly bigger time frame, daily chart, the Nifty 50 index is trading near the upper band of the Bollinger bands indicator, showing a slightly high probability of a short-term uptrend reversal.

Nifty 50 Trading Strategies 

Here are the Nifty 50 technical signals that investors should watch out for: 

Positive Signals

Source: Tradingview, Nifty 50, 30-minutes chart showing support and resistance. 

• A major positive sign for the Nifty 50 index is if it does not fall below the 25,000 level and stays above the 25,000 – 25,100 resistance zone. 
• A confirmation of this move can be obtained from the MACD indicator on the 30-minute chart staying above the zero line. 

Source: Tradingview, MACD indicator for Nifty 50, 30-minutes chart. 

Negative Signals

• A major negative sign for the Nifty 50 index will be if, for some reason, it breaks below the 24,500 – 24,600 support zone. 
• Until the index stays between the 24,500 – 25,000 range, it can neither be considered bullish nor bearish. Sideways markets can be slightly confusing for traders as no clear signs are received. 

Key Factors for the Current Week 

Here are the factors that can influence the Indian stock market trends for the current week: 

• India Inflation Data: On Thursday, June 12, 2025, after the market closes, Indian inflation data for the month of May will be presented, which can influence the market trends. 
• US Inflation Data: On Wednesday, June 11, 2025, US inflation data will be given for the May month. This data will provide insights into the further action of the US Federal Reserve, which can influence the global markets. 
• US-India Tariff: The US and India are in advanced talks of tariff negotiations before the expiry of the deadline on July 9, 2025. Any positive news on this front can be positive for the markets. 

Performance of Other Markets and Assets 

Let us take a look at the performance of other asset classes and markets in the previous week: 

The crude oil and gold futures jumped globally last week as a result of rising tensions between Russia and Ukraine. After both the countries increased their military actions against each other. 

The global markets rallied since the US and Chinese governments conducted trade talks. This showed the easing of trade tensions between the two largest economies, giving investors a positive outlook. 

Investors should take note that both events are not isolated to just the previous week. Their effects can be felt in the coming weeks. (if there is any major development)

Conclusion 

In the previous week, the stock market in India was positive as a result of RBI monetary policy. The Nifty 50 index is in a broader sideways zone of 24,500 – 25,000 zone. Last week, there were not any major geopolitical events directly impacting the Indian markets. Invests should watch for Indian inflation numbers for May 2025, which will be presented on Thursday. Traders can visit numerous online platforms to access charting and market tracking tools.

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Kinshuk

Kinshuk is a writer at Investon. He has a passion for writing articles around various topics related to finance. He has previously written on diverse topics related to finance, ranging from technical analysis to IPOs. He has cleared level 3 of the CMT program.

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