Nifty 50, Sensex Forecast for June 2: Analysts' Predictions and Market Outlook

Indian Stock Market Set to Open Lower on Tuesday

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday, tracking weak sentiment in global markets amid uncertainty over the US-Iran peace talks. The trends on Gift Nifty indicate a gap-down start for the Indian benchmark index, with the Gift Nifty trading around 23,262, a discount of nearly 200 points from the Nifty futures' previous close.

Monday's Market Performance

On Monday, the Indian stock market ended sharply lower, with the benchmark Nifty 50 closing below 23,400 level. The Sensex tanked 508.40 points, or 0.68%, to close at 74,267.34, while the Nifty 50 settled 165.15 points, or 0.70%, lower at 23,382.60.

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Sensex Prediction

Sensex formed a bearish candle on daily charts and is holding a lower top formation on intraday charts, indicating a negative trend. According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the short-term texture of the market is weak, but due to temporary oversold conditions, a technical bounce back from the current levels is expected. For day traders, 74,500 would act as a trend decider level. Below this, the correction wave is likely to continue on the downside, with Sensex potentially slipping to 74,000 - 73,700.

Nifty 50 Prediction

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Nifty 50 index formed a strong bearish candlestick pattern on the daily timeframe, indicating continued weakness in the near term. According to Nilesh Jain, VP-Head of Technical and Derivative research at Centrum Finverse Ltd, the index has broken down from a symmetrical triangle pattern on the daily chart and faces strong resistance near its 50-DMA, placed at 23,690. The previous swing low at 23,262 is expected to act as an immediate support level.

Technical Indicators

The MACD has generated a fresh bearish crossover, and the RSI has slipped below the 50 level, signaling a loss of momentum and weakening market strength. India VIX has risen by nearly 2% to close around 16.50, indicating heightened market uncertainty.

Bank Nifty Prediction

Bank Nifty index ended 596.10 points, or 1.10%, lower at 53,643.10 on Monday, forming a bearish candle on the daily chart. According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the immediate support for Bank Nifty is placed in the 53,200 - 53,100 zone, and any sustainable move below this zone could result in Bank Nifty extending its weakness towards 52,700, followed by 52,300 in the short term.