Week Ahead....

In a week of consolidation, India's benchmark indices closed flat on June 2 with the Nifty at 18,534 and the Sensex at 62,547. While the Nifty gained 0.19 percent from previous week's close, the Sensex added only 0.07 percent.

Major action was seen in the midcap space with the Nifty Midcap 100 scaling a record high of 34,006.55. The index gained 1.6 percent during the week.

With earnings season wrapped up and the US debt ceiling concerns behind us, the RBI monetary policy action will take the centre stage in the week beginning June 5. As long as the Nifty stays above 18,315, bulls may have an upper hand.

The Reserve Bank of India (RBI) is likely to continue with its stand in the June monetary policy on the back of a lower inflation print in April and a higher-than-expected gross domestic product (GDP) growth rate in the January-March quarter.

The overall sentiment in the market is expected to remain sideways, indicating a lack of clear direction in the near term. The Nifty is likely to find support at the levels of 18,450-18,500, while resistance levels are anticipated at 18,650 and 18,800.

The Options data indicates that it may be rangebound in coming days, with initial support at 18,500, then 18,400, whereas 18,600-18,800 is expected to be key hurdle on the higher side.