Indian equity markets commenced June with heightened volatility, as the BSE Sensex experienced significant intraday fluctuations. After opening approximately 200 points lower, the index plunged nearly 600 points to a low of 80,654.26 before recovering to close at 81,373.75. This sharp rebound suggests underlying support levels, but the overall market texture remains non-directional, indicating a cautious trading environment.
Market experts advise adopting a level-based trading strategy for June 3, given the current indecisive market conditions.Key support levels to monitor include 81,100 and the 20-day Simple Moving Average (SMA) around 81,300. A sustained move above these levels could propel the index towards resistance zones at 81,600 and 81,800. Conversely, a decline below 81,100 may intensify selling pressure, with potential support at 80,700 and 80,500.
The India VIX, a gauge of market volatility, surged approximately 7% to reach an intraday high of 17.73 on June 2, reflecting increased investor apprehension amid global uncertainties. This uptick in volatility underscores the necessity for traders to exercise caution and remain vigilant to market developments.
In summary, while the Sensex demonstrated resilience with a strong intraday recovery, the prevailing non-directional market texture calls for a strategic approach focused on key support and resistance levels. Traders are encouraged to stay informed and adjust their positions accordingly to navigate the current market landscape effectively.
