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

A move above 24,600 could trigger a quick pullback rally towards 24,700 levels, one of the analysts said.

<div class="paragraphs"><p>The benchmark equity indices ended lower for the third straight session on Tuesday, dragged down by shares of ICICI Bank Ltd. and HDFC Bank Ltd.(Representative image. Source: Envato)</p></div>
The benchmark equity indices ended lower for the third straight session on Tuesday, dragged down by shares of ICICI Bank Ltd. and HDFC Bank Ltd.(Representative image. Source: Envato)

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.

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Market Recap

The benchmark equity indices ended lower for the third straight session on Tuesday, dragged down by shares of ICICI Bank Ltd. and HDFC Bank Ltd. The NSE Nifty 50 declined 174.10 points or 0.70% to settle at 24,542.50, while the BSE Sensex fell 636.24 points or 0.78% to end at 80,737.51.

The benchmark indices underperformed the broader markets as most sectoral indices ended the day in the red. The Nifty Oil & Gas index was the worst performing sectoral index, slipping for the third straight session. The Nifty PSU Bank index also declined, snapping its two-day winning streak.

The Nifty Realty index bucked the trend and emerged as the top performing index, notching gains for the second consecutive session.

Meanwhile, the Nifty Pharma, Metal, and IT indices fell for the third session in a row. The Nifty Bank index also snapped a four-day gaining streak, with IDFC First Bank Ltd. and IndusInd Bank Ltd. among the top laggards.

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

The Indian rupee ended weaker by 20 paise at 85.59 against the US dollar on Tuesday, compared to its previous close of 85.39 on Monday. The domestic currency opened 13 paise lower at 85.52 amid a host of global and domestic economic factors weighing on the currency markets.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.

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