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Trade Setup for June 6: Nifty pins hopes on a bigger RBI rate cut to move towards 25,000 and beyondThe Nifty remained volatile within a defined range throughout the day, failing to establish a clear directional move. The support at 24,500 continues to hold firm. Unless the index breaches this level, a serious correction appears unlikely, according to analysts.By Meghna Sen   June 5, 2025, 6:19:20 PM IST (Published)3 Min ReadOn the weekly expiry session, Indian equities witnessed a rangebound trade, with the benchmark Nifty 50 index closing above the 24,700 mark. The index ended the day with a gain of 131 points at 24,751 but not without bouts of volatility.

Between 12 pm and 2 pm, the Nifty surged nearly 200 points only to give up all those gains within a few hours.

The broader markets mirrored the benchmark's move. Both large-cap and midcap indices advanced 0.6% each. The Nifty Midcap 100 rose 0.53%, while the Nifty Smallcap 100 outperformed, gaining 0.96%. The smallcap index extended its rally for the fourth straight session to close at a four-month high.

Sector-wise, Nifty Realty, Pharma, and Healthcare led the gains. On the other hand, PSU Banks, Media, and Auto indices ended in the red.

The Nifty Bank index closed in the green but relatively underperformed the broader market.

Among individual stocks, Eicher Motors, Trent, and Dr Reddy’s Laboratories were the top gainers on the Nifty, while IndusInd Bank, Tata Consumer Products, and Axis Bank were the major laggards.

Reliance Industries was the top contributor to the Nifty's gains, rising over 1% following a bullish note from global brokerage JPMorgan, which sees a further upside of 10% in the stock.

Defence stocks surged after reports that NATO is looking to increase defence spending to 5% of GDP. Meanwhile, realty names continued to rally, with DLF gaining 3% and Godrej Properties rising over 2%.

In the metals space, Hindustan Zinc spiked 6% in the last hour of trade as silver prices in India hit a record high of ₹1,04,000 per kg.

Looking ahead, the Reserve Bank of India (RBI) is widely expected to cut the repo rate tomorrow by 25 basis points to 5.75%, marking its third rate cut of 2025.

According to Devarsh Vakil of HDFC Securities, the Nifty has regained its position above the 20-day exponential moving average (EMA), indicating a potential strengthening of the underlying trend. The index appears to have established a strong base near the 24,500 level.

"On the upside, 24,900 could offer short-term resistance for the Nifty, as investors also await the RBI's monetary policy decision on June 6, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time," Vakil said.

Rupak De of LKP Securities said that the index remained volatile within a defined range throughout the day, failing to establish a clear directional move. However, he pointed out that a golden crossover is visible on the daily chart, signaling the potential for a strong uptrend in the short term.

He added that support at 24,500 continues to hold firm. Unless the index breaches this level, a serious correction appears unlikely. On the contrary, a steady or even sharp recovery could unfold in the near term.

Om Mehra of SAMCO Securities said that a sustained move above the 24,900 mark could act as a trigger for renewed upward momentum. On the downside, immediate support is seen at 24,600, followed by a stronger cushion near 24,550.

The Nifty Bank ended the session at 55,760.85, continuing to trade within a narrow range that has persisted over the past several weeks. While price action remains muted, the broader trend still favours the bulls, supported by a sequence of higher highs and higher lows.

Mehra added that the index is trading above all major moving averages, and the ascending triangle formation on the daily chart suggests the potential for an upward breakout. A close above 56,162 could pave the way for a fresh leg of gains.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBSE SensexNifty 50share market todayTrade setup