Nifty50 Prediction for Monday, June 1 by experts: Indian stock markets are expected to remain under pressure when trading resumes on Monday, June 1, after the NSE Nifty50 suffered a sharp decline in the previous session on Friday, May 29, as investors reacted to weak monsoon forecasts, MSCI rebalancing, and global geopolitical concerns over uncertainty surrounding a possible US-Iran conflict.
Nifty closes below 23,550 after a late-hour selloff on Friday, May 29
Created with AI. Errors are possibleNSE Nifty50 lost 0.72 per cent during the week. On Friday, May 29, the index extended its losing streak for the third consecutive session, dipping 1.50 per cent or 359.40 points to reach 23,547.75. The Nifty witnessed sharp swings during the session, touching an intra-day high of 24,002.80 before falling to a low of 23,484.75.
Nifty50 Prediction for Monday, June 1 by experts
Experts cautioned that traders should maintain a highly vigilant stance and avoid aggressive bottom-fishing at the open. High stock-specific volatility is bound to persist unless the index proves it can securely hold and build a base above the $23,500$ zone, the technical experts said.
Nifty50 Prediction for Monday, June 1: Nandish Shah sees a weak short-term trend
According to Nandish Shah – Deputy Vice President, HDFC Securities, the Nifty has turned technically weak after slipping below important moving averages and failing to sustain a recent breakout attempt.
“Nifty extended its losing streak for a third consecutive session, declining 359 points to close at 23,547. After a flat start, the index attempted an early recovery but failed to sustain momentum, reversing sharply and slipping over 500 points from the day’s high. Notably, nearly 300 points of decline came in the final 30 minutes of trade, highlighting intensified selling pressure and a clear loss of upward momentum following the failed breakout,” he said.
On a weekly basis, Nifty closed 0.72% lower. NSE cash market turnover more than doubled compared to the previous session, largely driven by MSCI rebalancing-related trades, Shah said.
Nifty gainers and losers on Friday, May 29
“The Indian rupee outperformed its Asian peers, appreciating by 69 paise to close at its highest level since May 8. This marked its strongest single-day gain since April 2, supported by easing crude oil prices, suspected RBI intervention, and optimism around a potential extension of the US-Iran ceasefire,” Shah further stated.
Technically, Shah said Nifty continues to face resistance around its 50-day EMA around 23,981. Short term trend turned weak as Nifty fell below its key moving averages.
“On the upside, breached 23,800 support is likely to flip into resistance. Today’s low of 23,484 now marks immediate support; a decisive break below that level would expose the index to the next support placed near 23,260,” he concluded.
Nifty technical outlook for Monday, June 1
Commenting on Nifty technical outlook, as quoted by IANS, experts said the Nifty continues to trade below its 20-week and 50-week exponential moving averages (EMAs) — indicating a lack of strong bullish momentum, although support from the broader long-term trendline remains intact.
“On the upside, immediate resistance levels are placed at 23,900 and 24,100. On the downside, support is seen at 23,400 and 23,200,” an analyst stated.
“A decisive breakdown below the 23,200 zone could invite fresh selling pressure, whereas sustained trade above 24,100 may improve sentiment and support a recovery move,” a market expert noted.
Broader markets on Friday, May 29
In the broader markets, the Nifty MidCap 100 index fell 1.33 per cent, and the Nifty SmallCap index slipped 0.85 per cent.
IT stocks, however, remained resilient during the session, with the Nifty IT index gaining more than 0.60 per cent.
Market participants continued to favour technology counters amid the overnight rally in US tech stocks and weakness in the Indian rupee, which is expected to improve margins for export-oriented IT companies.
Analysts said the session highlighted the fragile nature of market sentiment near higher resistance levels.
“The market witnessed broad-based selling pressure following the IMDs monsoon forecasts to 90 per cent of the long period average (LPA), raising concerns among investors,” as per the analyst.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
