Trade Setup For June 5: 24,500 Support To Be Crucial For Nifty
The benchmark equity indices ended higher on Wednesday, snapping a three-day losing streak and buoyed by gains in select heavyweights.
The NSE Nifty 50 ended Tuesday’s session with a modest gain of 77 points, snapping its three-day losing streak but failing to reclaim the 20-day simple moving average at 24,700.
Aditya Gaggar, director of Progressive Shares, said the index formed a bullish Harami candlestick pattern on the daily chart, hinting at a potential reversal. However, he underscored 24,500 as a crucial support zone for the Nifty 50, while resistance is expected at 24,725.
Shrikant Chouhan, head of equity research at Kotak Securities, also highlighted the 20-day simple moving average at 24,700 as a pivotal breakout level. He cautioned that if the index fails to clear this resistance, it could remain trapped in a range, with fresh selling likely below 24,450. In that case, the index might slip further to 24,320–24,300 in the short term.
Bajaj Broking, meanwhile, observed that market breadth was strong in mid-cap and small-cap counters, driven by rotational flows and improving risk appetite. It also noted easing volatility, with the India VIX cooling off by nearly 5%.
Looking ahead, Sameet Chavan, head of research at Angel One, warned that the breach of 20 DEMA and the critical Fibonacci retracement zone has tilted the balance to the downside, placing the bullish gap at 24,380–24,170 as the next line of defence. He said a decisive move above 24,700–24,800 could reset the tone and help regain bullish momentum.
The action is likely to remain range-bound in Wednesday’s session as traders eye these key levels, along with broader cues from the upcoming Monetary Policy Committee meeting and any fresh geopolitical developments.
Market Recap
The benchmark equity indices ended higher on Wednesday, snapping a three-day losing streak and buoyed by gains in select heavyweights. The NSE Nifty 50 rose 77 points or 0.32% to settle at 24,620, while the BSE Sensex advanced 260.74 points or 0.32% to end at 80,998.
