Key Market Trends to Watch: 15 Developments to Guide Your Trading Strategy on June 4

Nifty 50 Continues to Trade Below Key Moving Averages Amid Weak Momentum Indicators

The Nifty 50 closed the day's low with moderate losses after staging a sharp recovery in the second half from a new swing low on June 3. Despite the intraday recovery, the index remains under bearish control, trading well below all key moving averages. Momentum indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), continue to suggest a weak trend.

If the index fails to defend Wednesday's low of 23,150, selling pressure may intensify in the upcoming sessions, potentially dragging it towards the 23,000-22,700 levels. However, if the index manages to hold above this level, bulls may attempt to push it towards the 23,600-23,700 zone (10- and 20-day Exponential Moving Averages), followed by 24,000, which remains a key resistance level.

Key Levels for Nifty 50 and Bank Nifty

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The Nifty 50 formed a small-bodied bearish candle with a long lower shadow on the daily timeframe, indicating buying interest at lower levels amid volatility. However, it failed to close above the previous day's high. The short- and medium-term moving averages continued to trend downward, while the RSI, at 41.41, remained below the signal line, and the MACD stayed below both the reference line and the zero line.

Nifty 50 Options Data

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The maximum Call open interest was seen at the 24,000 strike, which can act as a key resistance level for the Nifty in the short term. On the Put side, the 23,300 strike holds the maximum Put open interest, which can act as a key support level.

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 1.02 on June 3, from 1.03 compared to the previous session. The increasing PCR indicates that traders are selling more Put options than Call options, generally indicating a firming up of a bullish sentiment in the market.

India VIX and Other Key Indicators

India VIX, the fear gauge, rose 6.01 percent to 16.28 and remained within the 14.50-17.00 range for the last five to six sessions. A decline below this range and sustained trading under it are necessary for bulls to gain confidence.

Stocks with High Delivery Trades and Under F&O Ban

Stocks with high delivery trades include [list of stocks]. Securities banned under the F&O segment include Amber Enterprises India and Kaynes Technology India.