Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 2

Mint

4 days ago

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Monday tracking weak global market cues.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,870 level, a discount of nearly 1 point from the Nifty futures' previous close.
On Friday, the domestic equity market indices ended lower, with the benchmark Nifty 50 closing below 24,800 level
The Sensex declined 182.01 points, or 0.22%, to close at 81,451.01, while the Nifty 50 closed 82.90 points, or 0.33%, lower at 24,750.70.
Here's what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex formed a small bearish candle on weekly charts, and is holding a weak formation on intraday charts, which is largely negative.
'We believe that the 20-day SMA (Simple Moving Average) and the level of 80,900 will act as key support zones for short-term traders, while 82,200 will serve as a key resistance area for the bulls. As long as Sensex remains between the 80,900 and 82,200 ranges, a sideways, range-bound texture is likely to continue,' said Amol Athawale, VP-Technical Research, Kotak Securities.
On the upside, he believes a successful breakout above 82,200 could push the Sensex towards 82,900. Further upside may also continue, potentially lifting the index up to 83,700.
'On the other hand, a breach of 80,900 could change the sentiment. Below this level, Sensex is likely to retest the levels of 80,300 – 79,800,' said Athawale.
Nifty 50 declined 0.33% to end at 24,750.70 on May 30. On the weekly front, the index slipped 0.41%, however, posted a healthy monthly gain of 1.71%, reflecting a broader consolidation phase within a bullish trend.
'Nifty 50 is navigating a parallel channel between 24,500 and 25,000, with the index hovering near the median of this range. However, with several attempts, the index has yet to deliver a decisive breakout in either direction. Nifty 50 remains below the 9-day EMA, signalling near-term fatigue, but remains firmly above the 20-day EMA, which still supports the ongoing uptrend. The index remains non-directional, but a fresh move is likely to emerge only after a confirmed close above or below the defined range on consecutive sessions,' said Om Mehra, Technical Research Analyst, SAMCO Securities.
The daily and weekly RSI continue to sustain above the 55 mark, suggesting a neutral momentum setup. The primary structure remains bullish, and a sustained close above 25,000 may open the gates for a renewed upward rally, he added.
Puneet Singhania, Director at Master Trust Group said that the Nifty 50 index continues to sustain above its 21-day EMA, which is acting as a critical dynamic support level.
'Nifty 50 index is still holding above key moving averages, supporting the ongoing uptrend. RSI is also trading above 14-day SMA, currently trading at 59. Strong support lies around 24,500, a previously tested demand zone. If this level breaks, Nifty 50 may drift lower toward 24,200. On the upside, resistance is seen at 25,000. A decisive move above this level could lead to a rally toward 25,300. Positional traders can look to buy on dips near support,' said Singhania.
According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, the Nifty 50 formed an insider candle indicating indecisiveness in the index.
'The momentum indicators are all decaying due to the sideways move in the index for the last 5 trading days. The index continued its consolidation between the 24,600 and 25,150 levels. The options writers' data for the coming week's expiry also suggests range bound move in the index. The higher time frame shows bullishness in the index; however, the consolidation for the last few days has played a spoilsport, suggesting a possible fall towards the support at 24,600 levels before an up move,' said Dwarakanath.
The ADX average line is well below 20 levels, indicating a possible trend is yet to be established on the daily chart, he added.
Judging by the bullish market outlook, VLA Ambala, Co-Founder of Stock Market Today suggests buying at lower levels for market participants.
'Considering these aspects, the Nifty 50 index's key support level for this week may lie between the 24,520 and 24,450 range. However, if there's a gap-down opening, the range might serve as an immediate support level, and the levels of 24,880 and 25,030 may serve as resistance points,' Ambala said.
Bank Nifty index rallied 203.65 points, or 0.37%, to close at 55,749.70 on Friday, forming a small bull candle with a higher high and higher low on the weekly chart, signaling consolidation with positive bias.
'Bank Nifty traded with high volatility throughout the week but managed to end positive, showing resilience near key support levels. The index took support near its 21-day EMA and has consistently traded above this level, which is currently near the 55,000 mark. The index is currently at the upper edge of the trading range, showing strength. Key support is placed at 55,000 and 54,500, offering a good zone for dip buying,' said Puneet Singhania.
On the upside, 56,100 is a key resistance. A sustained move above this level could trigger a sharp rally toward 57,000. Overall, the setup remains positive, and traders can look to buy on dips, he added.
Bajaj Broking Research said that the Bank Nifty index is currently testing the upper band of the last 5 weeks consolidation range placed around 55,800 - 56,000 levels.
'Overall, we expect the index to extend the last 5 weeks' consolidation in the broad range of 56,000 - 53,500. A move above 56,000 levels will signal acceleration of the up move towards 56,700 levels in the coming sessions. Immediate support is placed at 54,800 levels while the short-term support is seen at 54,000 - 53,500 being the confluence of key retracement and 50 days EMA,' said Bajaj Broking Research.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.