Nifty 50, Sensex Outlook: June 1 Indian Stock Market Trade Expectations

Indian Stock Market Set for Tepid Opening on Monday Amid Global Cautiousness

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a muted start on Monday, following mixed global market cues, amid cautiousness due to the uncertainties over the US-Iran peace talks. The trends on Gift Nifty also indicate a subdued start for the Indian benchmark index. The Gift Nifty was trading around 23,726 level, a discount of nearly 22 points from the Nifty futures' previous close.

On Friday, the Indian stock market ended sharply lower, weighed down by sudden fag-end selling, with the benchmark Nifty 50 slipping below 23,600 level. The Sensex tanked 1,092.06 points, or 1.44%, to close at 74,775.74, while the Nifty 50 settled 359.40 points, or 1.50%, lower at 23,547.75.

Market Expectations

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According to Amol Athawale, VP Technical Research at Kotak Securities, as long as Sensex trades below the 50-day SMA of 75,300, the weak sentiment is likely to continue. On the downside, the index could slip to 74,100 - 73,800. Further downward movement may also continue, potentially dragging the index to 73,300 - 73,100. On the upside, above the 50-day SMA of 75,300, a bounce back could extend till 75,900.

Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd, noted that Nifty 50 index continues to trade below all key moving averages, reflecting a cautious near-term outlook, while the RSI at 43 indicates subdued momentum. A crucial support zone is placed around 23,250 – 23,300, and a decisive breach below this range could accelerate selling pressure toward the 23,000 mark. On the upside, 23,800 remains a key resistance level and coincides with the 21-day EMA.

Mayank Jain, Market Analyst, Share.Market by PhonePe, observed that while the 23,500 level (backed by the 50-day SMA) is the immediate line of defense, the chart shows a stronger support net around the 23,250 – 23,350 range. If this range breaks, Nifty 50 could open the door for a deeper correction toward the 23,000 mark.

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The broader market stance will remain cautious until the Nifty 50 decisively reclaims and sustains itself above the 24,000 level, according to Jain.

Bank Nifty index ended 614.65 points, or 1.12%, lower at 54,239.20 on Friday, forming a bearish candle on the daily chart. On the weekly timeframe, the Bank Nifty gained 0.34% and formed a shooting star pattern, with a long upper wick indicating rejection from higher levels.

Sudeep Shah, Head- Technical and Derivatives Research at SBI Securities, noted that the Bank Nifty index is trading below its key moving averages, which are trending downward, suggesting a weak bias. The daily RSI remains in a sideways zone as per the RSI range shift rules, indicating lack of clear momentum. Going ahead, the 53,500 – 53,400 zone is expected to act as an important support for the index. A breach below 53,400 could trigger further downside, with the next key support placed around 52,700.

Om Mehra, Technical Research Analyst, SAMCO Securities, highlighted that the weekly close near the lower end of the range, despite the nominal gain, is a cautionary signal suggesting that the recent recovery may face further resistance before extending higher. The daily RSI is placed near 46, slipping below the neutral zone, while the MACD line remains positive. On the downside, the 54,000 – 53,800 zone remains the immediate support area. On the upside, the 54,600 – 54,800 zone remains the immediate resistance zone.