Nifty Prediction for Tuesday, June 2: Experts say bearish trend firms up; will index slip toward 23000 mark? – Markets

Market experts indicate that the structural bias for Tuesday remains deeply cautious to negative, with the index forming a strong bearish candlestick pattern on the daily charts as sellers maintain absolute control.

The technical analysts further believe that traders should prepare for another volatile session, with key support levels likely to determine the near-term direction of the market.

Sachin Gupta, VP – Research, Technical Research, at Choice Broking Private Limited, stated, “Indian equity benchmark Nifty index witnessed a negative close on 1st June 2026. The index opened with a gap-up of 106.75 points at 23,654.50, indicating positive sentiment at the start of the session.”

However, the optimism faded quickly as the index registered its intraday high of 23,733.70 within the first few minutes of trade. “Thereafter, persistent selling pressure dominated the market throughout the day, dragging the index steadily lower. The selling intensified towards the latter half of the session, with Nifty registering its intraday low of 23,357.95 near the close and eventually settling at 23,382.60. The index ended the session with a decline of 165.15 points or 0.70%,” Gupta said.

On the daily timeframe, Gupta stated the index has formed a strong bearish candlestick pattern as sellers remained in control throughout the session. “The inability to sustain the gap-up opening and the close near the day’s low indicate significant weakness in market sentiment. Notably, 40 out of the 50 constituents of the Nifty 50 index closed in negative territory, highlighting broad-based selling pressure across sectors,” he stated.

From a technical perspective, Gupta noted that immediate support is placed in the 23,150–23,200 zone, while resistance is observed in the 23,480–23,550 range. “The Relative Strength Index (RSI) stands at 40.27, indicating weakening momentum and suggesting that the index is approaching the lower end of the neutral zone. The volatility index, India VIX, rose by 2.21% to close at 16.54, indicating an increase in market volatility and a cautious approach among market participants,” he added.

“In the derivatives segment, notable call writing was observed at the 23,500 and 23,600 strikes, while put writing was concentrated at the 23,400 and 23,200 levels, indicating immediate resistance near higher levels while support remains positioned around lower strikes,” Gupta said.

Sectorally, the market witnessed widespread weakness with most sectors ending in the red. Significant pressure was visible in FMCG, Financial Services, PSU Banks, Realty, Auto, Cement, Healthcare, and Private Banking stocks. However, selective strength was seen in the IT, Media, Metal, and select technology-related segments.

“Market breadth remained distinctly negative, with declining stocks substantially outnumbering advancing stocks, reflecting broad-based weakness across the broader market,” the analyst said.

Nifty Bank Prediction for Tuesday, June 2

Sachin Gupta said, the Bank index opened with a gap-up of 164.65 points at 54,403.85, reflecting a positive start for the banking space.

“However, similar to the broader market, Bank Nifty registered its intraday high of 54,582.75 within the first few minutes of trading and thereafter witnessed relentless selling pressure throughout the session. The index gradually drifted lower and eventually registered its intraday low of 53,470.00 near the end of the trading day. Bank Nifty finally settled at 53,643.10, ending the session with a decline of 596.10 points or 1.10%,” he stated.

On the daily timeframe, the expert said the Bank Nifty formed a strong bearish candlestick pattern, indicating aggressive profit booking and weakness across banking counters. “The fact that all 14 constituents of the Bank Nifty index closed in negative territory highlights the broad-based selling witnessed in the banking segment and reflects significant pressure across both private and public sector banking stocks,” he added.

From a technical perspective, immediate support is placed in the 53,000–53,100 zone, while resistance is observed in the 54,100–54,300 range. The Relative Strength Index (RSI) stands at 43.02, indicating weakening momentum and suggesting that the banking index remains under pressure in the near term, he stated.

He further said the benchmark indices witnessed a sharply negative session despite opening with gap-up gains. “Both Nifty and Bank Nifty failed to sustain higher levels and came under heavy selling pressure throughout the day, eventually closing near their respective intraday lows. The broad-based nature of the decline was evident from weak market breadth, with declines significantly outnumbering advances and all Bank Nifty constituents ending in negative territory. Rising volatility, persistent selling across key sectors, and failure to hold opening gains indicate that market sentiment has turned cautious in the short term,” Gupta said.

Going forward, Gupta added the immediate support zones will be crucial for the indices, while sustained movement above resistance levels will be required to revive bullish momentum and improve overall market sentiment.

Nandish Shah – Deputy Vice President, HDFC Securities, said, “The Nifty declined for the fourth consecutive session, falling 165 points to settle at 23,382, its lowest closing level since May 12. Despite a positive start with a 107-point gap-up on the back of strong global cues, the index quickly lost momentum and continued its southward journey throughout the session. It eventually closed near the day’s low, marking a sharp reversal of over 375 points from the intraday high. NSE cash market turnover was subdued, declining more than 6% compared to the May month average.”

“Barring Nifty IT, Media and Metal, all sectoral indices closed in the red, with FMCG, PSU Banks and Realty leading the declines,” he added.

Indian rupee gave up early gains to close flat against the US dollar after weakening by over 25 paise intraday. The pressure was largely driven by rising crude oil prices and subdued domestic equity sentiment.

From a technical standpoint, Shah said Nifty continues to trade below all key moving averages, indicating a prevailing downtrend across timeframes. “Immediate support is placed at the recent swing low of 23,262; a decisive breach could accelerate downside momentum toward the 23,000. On the upside, the 23,700–23,800 zone is likely to act as a resistance band,” the analyst concluded.

Sectoral indices performance on Tuesday, June 2

Sector-wise, most indices on the NSE ended in negative territory. Nifty FMCG emerged as the worst-performing sector, falling 2.30 per cent, followed by Nifty PSU Bank which declined 1.85 per cent and Nifty Auto which lost 1.70 per cent. Nifty Private Bank slipped 0.98 per cent, while Nifty Pharma declined 0.54 per cent.

A few sectors, however, managed to end higher despite the broader weakness. Nifty IT surged 2.66 per cent, Nifty Media gained 1.37 per cent and Nifty Metal advanced 0.49 per cent.

On Friday, the Sensex tumbled 1,092.06 points, or 1.44 per cent, to settle at 74,775.74. The Nifty dived 359.40 points, or 1.50 per cent, to end at 23,547.75.

(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.)