Trade Setup For June 4: Nifty Eyes Pullback Above 24,600; Support At 24,450 Levels

The NSE Nifty 50 formed a long bearish candle on the daily chart on Tuesday, signalling selling pressure and negative bias at higher levels, according to Shrikant Chouhan, head of equity research at Kotak Securities.

Chouhan said the index slipped below the 20-day simple moving average placed around 24,700, intensifying the selling pressure. He identified immediate support at 24,450, below which fresh selling could accelerate, dragging the index further down to 24,320–24,300 levels.

On the upside, he noted that a move above 24,600 could trigger a quick pullback rally towards the 20-day simple moving average at 24,700. If the index sustains above these levels, further upside towards 24,760 could open up.

Chouhan described the intraday market texture as weak, with lower top formations visible on the intraday charts, cautioning traders to adopt a level-based trading strategy.

For Bank Nifty, Bajaj Broking observed that the index continues to hold a consolidation bias with a positive undertone. It identified resistance at 55,800-56,000 levels, a breakout above which could trigger a move towards 56,700 in the coming sessions.

Immediate support was seen at 55,000-55,200 levels, while key short-term support lay at 54,000-53,500, it said. The research firm advised a buy-on-dips strategy, citing the positive bias in the index’s structure.