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Market Update

Nifty : 24,750.70 -82.90 (-0.33%)

Sensex : 81,451.01 -182.01 (-0.22%)

• The equity benchmark Sensex fell nearly 200 points, while the Nifty closed below the 24,800 level, weighed down by profit booking in technology, auto, and metal stocks. The markets remained confined to a narrow range amid a lack of fresh catalysts, with renewed global trade tensions prompting investors to stay cautious following a brief rebound in the previous session. Additionally, traders adopted a cautious stance ahead of today’s domestic GDP release and upcoming US inflation data.

• The Nifty ended down 80 points, or 0.32%, slipping below 24,800 to close at 24,753, while the Sensex dropped 182 points, or 0.20%, to finish at 81,450. However, broader markets held steady, supported by a rotation of buying interest from large caps to mid and small caps.

• PSU banking stocks rallied sharply ahead of the RBI’s credit policy announcement scheduled for June 6th, with the Nifty PSU Bank Index rising 3%, led by Union Bank, PNB, UCO Bank, Bank of India, and PNB.

• In contrast, the Nifty Realty, Defense, and Metal indices fell over 1% due to profit booking. Despite subdued activity in the Nifty and Sensex for much of May’s second half, both indices posted gains of over 1.5% for the month, marking their third consecutive month of positive returns.

• Globally, both Asian and US index futures declined following a temporary reprieve in President Donald Trump’s reciprocal tariff plan. -182.01 (-0.22%)

Technical Outlook:

• Nifty Index opened on a flat note and remained under mild pressure during the first half, followed by a lackluster, sideways move in the second half. Overall, the index continued to consolidate without a clear directional bias. For the past 4–5 sessions, Nifty has been trading in a defined range between 24600 to 25000. This indicates a phase of consolidation where neither bulls nor bears have taken firm control.

• On the technical front, Nifty has formed an inside bar pattern on both the daily and weekly charts, reflecting indecision and a narrowing price range. Now it has to cross and hold above 24800 zones for an up move towards 25000 then 25200 zones else weakness could be seen towards 24600 then 24444 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.36% at 24852 levels. Positive setup seen in Muthoot Finance, BSE, NBCC, Union Bank, Canara Bank, Eternal, Glenmark, PNB, Cummins India, Manappuram Finance, Indian Bank and Bank of Baroda while weakness in SJVN, Chambal Fertilizer, Patanjali Foods, Bsoft, OIL India, Jindal Stainless, Vedanta, MGL, CESC, IGL, Alkem Lab and GMR Airport.

• On option front, Maximum Call OI is at 24800 then 25000 strike while Maximum Put OI is at 24500 then 24700 strike. Call writing is seen at 24800 then 25500 strike while Put writing is seen at 24400 then 24000 strike. Option data suggests a broader trading range in between 24300 to 25300 zones while an immediate range between 24500 to 25000 levels.

Global Market Update

• European Market - European stocks were set for the biggest monthly gain since January, as investors monitored the outlook for global trade. UK, Germany and France Index rose up to 0.8%. The real estate and chemicals sectors outperformed, while mining and telecom shares were the biggest laggards..

• Asian Market - Asian equity benchmark declined, though still on track for its best month since November 2023, led by losses in Hong Kong after Donald Trump’s tariff agenda received a temporary reprieve. Japan, Hong Kong and South Korea declined up to 1.2%.

• US Data - Personal Income and Personal Spending.

• Commodity - Oil prices fell 1% to below $65/bbl as investors are anticipating an eight-OPEC+ member meeting tomorrow, while monitoring global trade developments.

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