Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 4

After three consecutive sessions of decline, Indian equity benchmarks Nifty 50 and Sensex are showing signs of a potential rebound on June 4. Positive global cues and easing volatility indicators suggest a cautious optimism among investors. As trading resumes midweek, market participants are closely monitoring key support and resistance levels to gauge the sustainability of any upward movement.

Market Overview: Previous Session Recap

On June 3, the Indian stock market experienced a notable downturn, with the Sensex falling by 636.24 points to close at 80,737.51, and the Nifty 50 declining by 174.10 points to settle at 24,542.50. This marked the third straight session of losses, influenced by global economic uncertainties and profit-booking at higher levels.

Positive Indicators for June 4

Early indicators on June 4 suggest a positive opening for the markets. The Gift Nifty was trading around 24,720, indicating a premium of nearly 45 points over the previous close, hinting at a potential recovery. Additionally, the India VIX, a measure of market volatility, eased by 3.51% to 16.55, suggesting reduced investor anxiety.

Technical Analysis: Key Levels to Watch

Nifty 50:
Analysts note that the Nifty 50 is currently positioned at the lower end of its recent trading range of 24,500 to 25,000. A sustained move above 24,600 could lead to a pullback towards 24,700, while a drop below 24,500 may open the path to 24,300 levels.

Sensex:
For the Sensex, immediate support is seen at 80,500, with resistance around 81,000. A breach above 81,000 could trigger a rally towards 81,300, aligning with the 20-day Simple Moving Average (SMA). Conversely, a fall below 80,500 might lead to further downside towards 80,000.

Sectoral Outlook

The previous session saw broad-based selling across sectors, including financials, IT, and automobiles. However, defensive sectors like FMCG showed relative resilience. Market participants will be watching for sectoral rotation and leadership in today’s session.

Investor Sentiment in Tier 2 Cities

Investors in Tier 2 cities, such as Nagpur, Indore, and Jaipur, are increasingly active in the markets, often focusing on mid-cap and small-cap stocks. The recent market volatility has prompted a cautious approach, with many awaiting clearer signals before making significant investment decisions.

Conclusion:
As Indian equity markets open on June 4, the potential for a rebound is supported by positive global cues and easing domestic volatility. However, the sustainability of any upward movement will depend on the market’s ability to surpass key resistance levels and the emergence of sectoral strength. Investors, particularly in Tier 2 cities, are advised to remain vigilant and consider a balanced approach amid the prevailing uncertainties.