Weekly Market Outlook for 03 June to 07 June

Sachin Gupta Sachin Gupta

Last Updated: 3rd June 2024 - 10:38 am

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The benchmark Nifty50 index reached an all-time high of 23110.80 at the beginning of the week. However, it experienced a consistent decline thereafter, correcting nearly 2.5% over the week amid high volatility. While, the Bank Nifty closed the week relatively flat, indicating a more stable performance in banking stocks.

On Friday session, Nifty50 showed volatility due to election results but managed to close positively, gaining 0.19% or 42.05 points. The Bank Nifty outperformed with a rise of 301.60 points or 0.62%.

On the sector front, the session saw strong performances in high-weightage sectors like banking and financial services. While, there was a significant decline in the IT sector, which negatively impacted overall gains. 

Technically, Nifty traded within the previous day's range, forming an inside bar candle pattern, indicating crucial levels between 22700 and 22400. A breakout on either side may confirm the directional move in Nifty50. On the derivative front, the highest call writing was observed at 23000, suggesting resistance, while significant put writing at 22400 indicates support, further defining the expected range for Nifty in the coming days. 

Based on the technical indicators and option writing data, the Nifty is expected to trade within a defined range. Traders should monitor the 22700 to 22400 levels for potential breakouts to gauge the market's next directional move. The resistance at 23000 and support at 22400 will be key levels influencing the market sentiment in the near term.

                                     Nifty remains volatile amid election results

nifty-chart

 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  NIFTY Levels SENSEX Levels BANKNIFTY Levels FINNIFTY Levels
Support 1 22400 73600 48700 21650
Support 2 22180 73360 48300 21530
Resistance 1 22700 74280 49500 21790
Resistance 2 23000 74550 49800 21870
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