Indian stock market indices, the Nifty 50 and the Sensex, are expected to start on a muted note on June 2, 2025, mirroring weak global market signals.

Global and Domestic Cues:

• Gift Nifty Trends: The Gift Nifty was trading around 24,870, indicating a slight discount compared to the Nifty futures' previous close, suggesting a subdued opening for the Indian market.
• US Market Futures: US futures are under pressure, with Nasdaq and S&P 500 futures both down by 0.18% and 0.17% respectively which may limit near-term momentum in Indian markets.
• European Markets: European indices showed some strength, with the DAX and FTSE 100 up by 0.86% and 0.78% respectively, which may offer some support to Indian benchmarks.

Market Performance and Analysis:

• Previous Session: On the last trading day, Friday, the Nifty 50 closed below the 24,800 mark, while the Sensex ended lower by 182.01 points, or 0.22%, to close at 81,451.01 and the Nifty 50 closed 82.90 points, or 0.33%, lower at 24,750.70.
• Weekly Performance: On the weekly front, the Nifty slipped 0.41%, but it still managed to post a monthly gain of 1.71%, indicating a consolidation phase within a bullish trend.
• Expert Analysis: According to Amol Athawale, VP-Technical Research, Kotak Securities, the Sensex is expected to remain range-bound between 80,900 and 82,200. A breakout above 82,200 could lead to a push towards 82,900 and potentially 83,700. However, a breach of 80,900 could trigger a retest of 80,300-79,800 levels.
• Technical Indicators for Nifty 50: Nifty 50 is trading within a parallel channel between 24,500 and 25,000. According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, Nifty 50 formed an inside candle, indicating indecisiveness.

Key Factors to Watch:

• RBI's Monetary Policy Committee (MPC) Meeting: The outcome of the RBI's MPC meeting on June 6 will be closely watched for the central bank's stance on interest rates, especially amidst mixed macroeconomic signals.
• High-Frequency Data: Participants will be tracking auto sales numbers and other economic indicators as the new month begins.
• Monsoon Progress: Updates on the monsoon's progress will be closely monitored.
• FII Flows: The trend in foreign institutional investor (FII) flows will be closely watched. FIIs were net buyers in May.
• Global Developments: Developments in the U.S. bond market will also be a key factor.
• US-China Tariff Talks: Concerns about a potential industry slowdown may arise, as metal stocks faced selling pressure amid concerns about a potential industry slowdown after U.S.-China tariff negotiations were reported to have "a bit stalled."

Trading Strategies and Recommendations:

• Range-bound Strategy: Given the expected range-bound movement, a sideways range-bound texture is likely to continue.
• Buy on Dips: Religare Broking suggests that as long as Nifty holds above its 20-day exponential moving average (around 24,600), a positive tone can be maintained.
• Stock-Specific Approach: Choice Broking suggests maintaining a stock-specific approach, focusing on stocks that show strength on the technical chart.

Stock Recommendations:

• Motilal Oswal Financial Services Ltd. recommends Radico Khaitan and JK Cement.
• Sumeet Bagadia recommends R R Kabel, Sudarshan Chemical Industries, Shaily Engineering Plastics, Wockhardt, and Prudent Corporate Advisory Services
• Sumeet Bagadia also recommends HDFC Bank, Pidilite Industries and DLF shares.

Overall Market Sentiment:

The market sentiment appears cautious ahead of key economic data and global cues. While domestic factors such as strong GDP growth provide a bullish backdrop, global uncertainties and mixed cues are likely to keep the market range-bound in the near term.