The Nifty 50 index opened at 24,669.7 and was trading below the 24,550 level in the morning session, breaching the 20-day EMA (24,638.73) in the daily time frame. It touched a day’s low at 24,526.15; however, in the afternoon, Nifty rebounded sharply, trading above the 20-day Exponential Moving Average (EMA).
The 20-day EMA, which is around the range of 24,600, acts as a key support level. The index has been in a consolidation phase for the last 12-15 sessions, trading between the range of 24,500 and 25,100. If Nifty breaches the 20-day EMA (24,600) support level, it could test the lower level of the range, i.e., 24,500.
The Nifty index peaked at 24,754, barely touching the nearest resistance of the 24,750 level, and closed at 24,716.60, down by −34.10 points or −0.14%. The Relative Strength Index (RSI) stood at 54.7 (well below the overbought zone of 70) in the daily time frame, and Nifty 50 was above all four 20/50/100/200 EMAs.
Bank Nifty performance and Outlook
Bank Nifty opened lower at 55,598.25, below Friday’s closing of 55,749.7. However, throughout the trading session, the index gradually increased and was trading in the green. It reached an intraday low at 55,400.55 in the morning session but later reclaimed and peaked at 55,966.3. The index closed in green at 55,903, up +153.70 points or +0.28%.
Bank Nifty has been in a sideways trend for the past few sessions, with immediate resistance at the 56,100 level and a support level around 55,100-55,400. If the 20-day EMA, i.e., the 55,100 level, is breached, then the index could go down to 54,600, which acts as the next support level.
In the daily timeframe, the Bank Nifty Index was above all four 20/50/100/200 EMAs, with an RSI of 63.09 (below the overbought zone of 70).
Market performance on June 2nd
The market opened in red on Monday at 24,669.70 and reached an intra-day low of 24,526.15. However, it closed on a flat note at 24,716.60, down by -0.14% or 34.10 points. The Nifty 50 index breached the 20-day EMA in the morning session, while it stayed above the 50/100/200 EMA. The RSI of the Nifty 50 index stood at 54.70. Meanwhile, BSE Sensex also opened in red at 81,214.42 and touched an intraday low of 80,654.26, breaching the 20-day EMA. It closed at 81,373.75, declined −0.09% or 77.26 points. RSI of Sensex stood at 54.69.
In the afternoon session, both indices saw a sharp recovery, due to investors’ optimism regarding the possibility of rate cuts in the upcoming Monetary Policy Committee meeting on June 6. Additionally, the Q4FY25 GDP growth rate of the country stood at 7.4%, which was in line with market expectations, adding to the optimism.
On the sectoral front, the Nifty PSU index was among the top gainers due to rate cut expectations, and it rose 2.43% or 169.30 points, and closed at 7,145.3. Bank of Maharashtra and Indian Overseas Bank were leading the index, with gains up to 7%.
The Nifty Realty index followed the lead, which rose by 2.18%, or 20.70 points, to 970.05. Brigade Enterprises Ltd. was the top gainer, rising by 5.29%, followed by Prestige Estates was up by 4.29%, as the company is set to launch housing projects worth Rs 42,000 crore in FY26, and Anant Raj Ltd saw an increase of 2.84%.
Nifty IT index was among the top losers, declining by 0.69%, or 258.55 points, and closing at 37,063 points. Persistent Systems and Mphasis were among the biggest laggards, falling more than 2%. Nifty Metal was also in red, which fell by -0.48% or 44.30 points and closed at 9,148.95 points, with Lloyds Metals & Energy Ltd and JSW Steel falling 2.76% and 1.25%, respectively. The index was impacted by Trump’s speech on Friday to increase the tariffs by 50% on steel imports.
Globally, Dow Jones Futures were also in red at 42,157.95, down by -109.12 points or -0.26%. Asian markets were also performing on a weak note, with Japan’s Nikkei 225 at 37,470.67, down by -494.43 points or -1.32%, whereas Hong Kong’s Hang Seng was at 23,157.97, declined by -131.80 points or -0.57%.
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