Firstly, the US markets ended with very strong gains on Friday. Dow Jones rallied 701 points on the back of the hot jobs report, while Nasdaq saw its sixth-straight winning week.

The US jobs data was very strong. Nonfarm payrolls grew much more than expected in May, rising 339,000. Economists polled by Dow Jones expected a relatively modest 190,000 increase. It marked the 29th-straight month of positive job growth. All eyes will now be on the US FOMC meeting on June 13 and 14.

Thirdly, easing concerns around the US debt ceiling also helped sentiment. The Senate passed a bill to raise the debt ceiling late Thursday night, sending the bill to President Joe Biden’s desk. That comes after the House passed the Fiscal Responsibility Act on Wednesday, just days before the June 5 deadline set by US Treasury Secretary Janet Yellen.

All eyes will be now be on the RBI policy on the June 8. The Reserve Bank of India is likely to pause in the June monetary policy on the back of a lower inflation print in April and a higher-than-expected GDP growth rate in the January-March quarter

The important level to watch is last weeks intraday high of 18662. Domestic institutions continues to buy in cash market while foreign investors sold in cash. DIIs net bought Rs 581.85 crore on Friday, while FIIs net sold Rs 658.88 crore on Friday.

In market opinion, JP Morgan has updated their model portfolio adding weight to SBI, Bank of Baroda, Bandhan Bank, Hero MotoCorp and Power Grid. JP Morgan analyses three factors — earnings revisions, valuations and price momentum trends — for 80 customised industry clusters to identify potential mean reversion candidates in India. Sectors that appear attractive to us now include — PSU banks, power transmission, micro/mortgage finance, media and two-wheelers, it said.