The Indian stock market experienced a modest decline on June 2, with the Nifty 50 index closing at 24,716.60, down 34.10 points or 0.14%. Despite the overall dip, the index displayed a notable intraday recovery, suggesting underlying buying interest at lower levels.
Technical analysis reveals a small positive candle formation on the daily chart, characterized by a long lower shadow.This pattern, resembling a bullish hammer, indicates potential support around the 20-day exponential moving average (DEMA). The Relative Strength Index (RSI) is also showing signs of improvement, reinforcing the possibility of a short-term upside bounce.
Experts identify immediate support at 24,600, with resistance near 24,900. A breakout above the 24,900 level could pave the way for a move towards 25,000. Conversely, a fall below 24,600 might lead to further consolidation or a downward move.
Market participants are advised to remain cautious, monitoring global cues and sectoral performances. The Nifty Bank index, which closed in the green on June 2, may offer opportunities for selective stock picking. Investors should focus on sectors showing resilience and potential for growth.
While the Nifty 50 index faces near-term challenges, the intraday recovery and technical indicators suggest a cautious optimism. Traders and investors should stay vigilant, ready to capitalize on opportunities as market conditions evolve.
