Indian equity benchmark indices are set to kick-off June on a muted note tracking the mixed global cues. Renewed uncertainty surrounding the proposed US–Iran agreement tempers the optimism that had supported risk sentiment in recent sessions. As the result season is over, investor attention is also likely to remain firmly focused on institutional flow dynamics.

Benchmark indices are likely to remain range-bound next week, although select midcap and smallcap stocks could continue to outperform on the back of healthy earnings momentum and strong domestic liquidity, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. "Investors are expected to remain cautious as mixed signals from the ongoing negotiations."
 

GIFT Nifty, Asian markets & US stocks
GIFT Nifty Futures on the NSE International Exchange were 33.30 points, or 0.14 per cent, down at 23,715.50, hinting at a muted start for the domestic market on Monday. Asian share markets firmed on Monday as the boom in all things AI continued to ​drive demand. KOSPI soared nearly 2.5 per cent, while Nikkei and Hang Seng gained nearly three-fourth a per cent each.

Wall Street's main indexes hit record closing highs on Friday and ​posted weekly and monthly gains as investors awaited details on a potential US-Iran deal. The Dow Jones Industrial Average rose 363.37 points, or ​0.72 per cent, to 51,032.34, the S&P 500 gained 16.44 points, or 0.22 per cent, to 7,580.07 and the Nasdaq Composite jumped 55.15 points, or 0.21 per cent, to 26,972.62.
 

Crude, US dollar, gold & more
The lack of news nudged Brent up 1.9 per cent to $92.89 a barrel, while US ​crude added 2.4 per cent to $89.46. The dollar index of the greenback against a basket of currencies including the yen and the euro, was flat at 99. In commodity markets, gold was little ​changed at $4,535 an ounce, having found little support as a safe haven or as a hedge against inflation.

Given the geopolitical uncertainty, elevated volatility, currency fluctuations, and mixed global macro signals, participants should maintain a cautious yet selective approach, said Ajit Mishra, SVP of Research at Religare Broking. "Traders should avoid excessive leverage and maintain disciplined risk management practices amid heightened event-driven volatility." he said.
 

FII-DII flows
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 21,105.86 crore on Friday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 16,764.14 crore on a net-net basis. Overseas investors pulled out nearly Rs 33,000 crore from Indian equities in May 2026.

As FPIs continue to sell and crude price remains elevated, rupee is likely to weaken. The trend of AI companies attracting capital flows from all over the world also is continuing to the flight of capital from countries like India who are AI laggards. This trend will change when the AI trade, which is already in bubble territory, ends, said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
 

Nifty50 & Sensex outlook
It has formed a long bearish candle on weekly charts, which supports further weakness from the current levels. As long as Nifty trades below the 50-day SMA of 23,700 and for Sensex 75,300, the weak sentiment is likely to continue. On the downside, the market could slip to 23,300-23,200/74,100-73,800, said Amol Athawale, VP of Technical Research at Kotak Securities.

"Further, downward movement may also continue, potentially dragging the index to 23,050-23,000/73,300-73,100. On the upside, above the 50-day SMA of 23,700 and for Sensex 75,300, a bounce back could extend till 23,800/75900. If it crosses 23,800/75,900, the index could move towards 24,000-24,100/76,500-76,800," it added.

Sensex witnessed a sharp reversal from higher levels after failing to sustain near the 76,200 zone, indicating strong resistance at higher levels. Immediate support is now placed around 74,000–74,200, while resistance is seen near 75,300–75,500. A sustained move below the support zone may trigger further weakness, while recovery above resistance could help improve short-term sentiment, said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.

The 23,800-24,000 zone remains a key resistance area, coinciding with the 20 DEMA and the previous weekly high. A sustained breakout above this range may revive buying interest and pave the way for the index to test the 24,300-24,350 zone, said Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One.

"Conversely, the 23,400-23,150 range is expected to provide immediate support. Any decisive breach below this support band could weaken overall market sentiment and trigger further downside pressure, making it a critical support juncture to watch for. Going ahead, we maintain a cautious stance until the market exhibits clearer directional trends," he added.
 

Nifty Bank outlook
Nifty Bank consolidated within a range before breaking down and gradually drifting lower. It formed a sizable bearish candle on the daily chart with a noticeable upper wick, reflecting its inability to hold higher levels. The DI- continues to remain above the DI+, indicating that sellers continue to maintain control over the bulls, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities

"Going ahead, the immediate support for Bank Nifty is placed in the 53,800-53,700 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 53,300, followed by 52,900 in the short term. On the upside, the immediate resistance for Bank Nifty is placed in the 54,600-54,700 zone," he said.

Bank Nifty witnessed a consolidation congestion breakout on the daily chart and successfully reclaimed its 20-day and 50-day SMA, indicating improving momentum in the index. However, mild profit booking has been visible during the last two trading sessions following the recent rally, said Vatsal Bhuva, Technical Analyst at LKP Securities.

"The overall structure remains positive as long as the index sustains above the 54,400 zone along with its key short-term and mid-term moving averages. On the levels front, 54,500-54,400 is expected to act as a strong support zone, while resistance is placed around 55,500-55,800. A sustained breakout above resistance could open upside potential towards 56,200 and 56,500 levels," he said.