Nifty 50, Sensex Forecast: June 4 Market Outlook

Indian Stock Market Expected to Open Lower on Thursday

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday, tracking weakness in global markets, as escalating US-Iran tensions in the Middle East keep crude oil prices elevated and raise inflation concerns.

The trends on Gift Nifty indicate a negative start for the Indian benchmark index, with the Gift Nifty trading around 23,315, a discount of nearly 200 points from the Nifty futures' previous close. This follows Wednesday's decline in the Indian stock market, where the benchmark Nifty 50 closed near 23,400.

On Wednesday, the Indian stock market ended lower, resuming its losing run, with the benchmark Nifty 50 closing 77.95 points, or 0.33%, lower at 23,405.60. The Sensex declined 303.67 points, or 0.41%, to close at 74,346.17.

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Sensex and Nifty 50 Predictions

Sensex formed a promising reversal pattern on intraday charts and a Dragonfly Doji kind of candlestick formation on daily charts, indicating indecisiveness between the bulls and the bears. According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the intraday market texture is non-directional, hence, level-based trading would be the ideal strategy for day traders.

The Nifty 50 index formed a Dragonfly Doji candlestick pattern on the daily timeframe, indicating strong buying support emerging from lower levels after an initial phase of weakness. According to Ajit Mishra – SVP, Research at Religare Broking Ltd, the 23,550 – 23,700 zone is likely to act as an immediate resistance band, whereas a decisive break below 23,150 could trigger the next leg of the decline.

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Bank Nifty Prediction

The Bank Nifty index ended 471.30 points, or 0.88%, higher at 54,185.95 on Wednesday, forming a bullish candle with a noticeable lower wick on the daily chart, reflecting buying interest at lower levels. According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the immediate resistance for Bank Nifty is placed in the 54,600 - 54,700 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 55,100, followed by 55,500 in the short term.

According to Om Mehra, Technical Research Analyst at SAMCO Securities, the immediate resistance for the Bank Nifty index is placed in the 54,500 – 54,800 zone, while support is seen around 53,700, followed by 53,500.