Market Outlook for 05 June 2024

Ruchit Jain Ruchit Jain

Last Updated: 5th June 2024 - 09:55 am

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Nifty corrected sharply throughout the day as the election results outcome differed significantly from the exit polls and market participants’ expectations. It was one of the steepest fall in recent times as Nifty and Sensex corrected by over 5 percent and the former index ended the day below 22000 mark.

Markets took a complete u-turn as compared to Monday’s session where market participants cheered the exit polls. The broader markets had already seen a rally ahead of the event in last few months and as the result outcome seemed to differ from expectations, traders started unwinding of long positions which resulted in a sharp correction. The recent outperformers from the PSU space were most beaten down counters resulting in over 15 percent correction in the PSE index. Meanwhile, INDIA VIX rallied to surpass the 30 mark, but settled around 26 at closing. Now until we see buying momentum resuming on the markets, it would be difficult to predict the near term trend. Technically, Tuesday’s low of 21280 will be seen as immediate support followed by 21080 which is the retracement support. On the higher side, 22400-22600 will be seen as immediate resistance zone. As of now, traders should wait on sidelines for the volatility to settle down. 

                                   Sharp fall in markets as elections results differ from expectations

nifty-chart

 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  NIFTY Levels SENSEX Levels BANKNIFTY Levels FINNIFTY Levels
Support 1 21300 71600 46000 20500
Support 2 21080 71250 45700 20200
Resistance 1 22400 72550 47500 21500
Resistance 2 22600 72900 48300 21800
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