Sensex, Nifty outlook for Monday, June 8: GIFT Nifty down 356 pts

Domestic equity markets ended lower for the second consecutive week on a negative note, with BSE Sensex and NSE Nifty falling about 0.7% each. On Friday, the 30-pack index closed at 74,243.34 and 50-pack index settled at 23,366.70. Both declined about 0.2% in the last session to end in the red. 

Gift Nifty & Wall Street

Investors should expect a rough start on Monday, June 8. Nifty futures on the NSE International Exchange plunged 356 points, or 1.52%, to trade at 23,091, hinting at a sharp gap-down opening. 

This weakness follows a massive overnight sell-off on Wall Street, where two of the three major indices recorded their biggest single-day fall this year. The Nasdaq Composite crashed 4.18% to end at 25,709.43, marking its worst performance in over a year as technology and AI stocks dragged. 

Meanwhile, the S&P 500 plunged 2.64% to settle at 7,383.74, and the Dow Jones Industrial Average declined 1.35% to close at 50,866.78. Global risk appetite soured after a stronger-than-expected U.S. jobs report fuelled worries that the Federal Reserve may keep interest rates higher for longer.

“Investor sentiment deteriorated following a stronger-than-expected U.S. jobs report, which reinforced expectations that the Federal Reserve may keep interest rates higher for longer,” said Ponmudi R, CEO – Enrich Money.

Triggers 

Vinod Nair, Head of Research, Geojit Investments Limited noted that “geopolitical tensions in West Asia and their influence on crude prices continued to weigh on sentiment”.  

Ajit Mishra – SVP, Research, Religare Broking Ltd tagged the current market state as a phase of “Cautious consolidation amid strong domestic macro and global headwinds”. 

According to data highlighted by Ponmudi, Foreign Institutional Investors (FIIs) acted as aggressive sellers, posting substantial net outflows of approximately Rs 31,114.47 crore during the first week of the month. Conversely, Domestic Institutional Investors (DIIs) offered a buffer with cumulative net inflows of Rs 33,933.05 crore. 

Domestic sentiment also adapted to the Reserve Bank of India’s (RBI) monetary policy outcome. The Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25% and maintained its neutral stance. 

Key levels to watch

Nifty: Analysts noted the 23,150 level as the critical line of defence for the 50-pack index.  Support: Ponmudi placed the immediate downside cushion at the 23,250–23,150 zone. Both Ponmudi and Mishra warned that a decisive break below 23,150 could accelerate selling pressure, with Ponmudi tracking an exposure down to 23,000 and Mishra noted the 22,800 mark.  

On the higher side, Ponmudi viewed the 23,500–23,550 zone as immediate resistance, a sustained breakout to trigger a recovery toward 23,750–23,800. Analysts highlighted 24,000 as the major resistance ceiling. Mishra recommended a “sell-on-rise approach preferred until the Nifty decisively reclaims the 23,700 level”.  

Sensex: For the 30-pack index, Ponmudi identified immediate resistance near the 74,600–74,800 zone, with a overhead resistance band at 75,500–75,800. On the flip side, crucial immediate support is firmly around the 74,000–73,800 zone.  

Strategy

Nair said that with earnings season behind, range‑bound movement is likely to continue as investors await greater clarity on growth momentum and external stability before taking directional positions.  Ponmudi said “the current environment, markets remain highly sensitive to both geopolitical and macroeconomic developments, with sentiment likely to be shaped as much by external events as by domestic fundamentals.”

Mishra recommended that market participants employ a selective approach. “Focus should remain on companies with strong earnings visibility, healthy balance sheets, and exposure to domestic demand themes,” Mishra advised, adding that elevated global policy signals demand prudent risk management and restrained leverage.