Sensex Prediction for Tuesday, June 2: Bearish grip tightens! Analysts warn of more downside below 74100 – Technical levels to watch – Markets

Sensex gainers and losers on Monday, June 1

Sensex Prediction for Tuesday, June 2 by experts

Market participants are bracing for continued near-term volatility as technical indicators flip decisively bearish, compounded by a major geopolitical flare-up in West Asia and surging global crude oil prices.

Market experts, meanwhile, have warned that the short-term market bias remains heavily tilted toward the bears, leaving little room for complacency in opening trades on Tuesday.

Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited, said, “On 1st June 2026, the BSE Sensex closed at 74,267.34, declining by -508.40 points (-0.68%), as persistent profit booking erased the gains from a strong gap-up opening. The index opened higher by around 428 points at 75,203.02 and touched an intraday high of 75,367.93 during the initial minutes of trade. However, the market failed to sustain at higher levels, and continuous selling pressure dominated the session thereafter. The Sensex gradually drifted lower throughout the day, hitting an intraday low of 74,203.68 before settling at 74,267.34, reflecting weak sentiment and lack of buying support at higher levels.”

Sector-wise, Focused IT, Information Technology, Metal, and Energy sectors witnessed buying interest and outperformed during the session. On the other hand, Power, Capital Goods, Industrials, Utilities, Realty, FMCG, PSU Banks, Auto, Consumer Durables, Financial Services, Consumer Discretionary, and BANKEX witnessed broad-based selling pressure. Banking and rate-sensitive sectors remained weak, while the IT space provided some support and helped limit the overall market decline, he further stated.

Technically, Tailor stated Sensex continued to face resistance near the 75,300–75,400 zone and witnessed a sharp reversal after the gap-up opening.

“The index closed near the day’s low, indicating that bears maintained control throughout the session. Immediate support is now placed around 73,500–73,700, while resistance is seen near 74,800–75,000. A sustained move below the support zone could trigger further weakness, whereas a recovery above resistance may improve short-term sentiment,” the analyst said.

For Tuesday’s trading session, the analyst suggested, “The overall market bias remains cautious to negative as repeated failure to sustain higher levels and closing near the day’s low reflects continued selling pressure. The broader trend remains under pressure in the short term, and traders may remain selective until the index shows signs of stability. As long as Sensex trades below the 74,800–75,000 resistance zone, volatility and stock-specific action are likely to dominate the market.”

According to Vipin Dixena, SEBI-registered analyst, Sensex remains under intense selling pressure after decisively breaking below the 74,600 support zone and trading near the critical 74,100 level.

“The sharp decline below the 50 EMA confirms a strong bearish trend, with lower highs and lower lows continuing to dominate the structure. RSI has slipped into oversold territory, indicating stretched downside momentum and the possibility of a short-term relief bounce. However, unless the index reclaims 74,600–74,800, sentiment is likely to remain weak,” he said.

“A breakdown below 74,100 could open the door for further downside toward 73,700–73,500, while any recovery is expected to face resistance near 74,600. Overall bias remains strongly bearish in the near term,” Dixena concluded.

On Monday, the United States said that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire. The nominal ceasefire between Iran and the US has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war.

Broader markets on Monday, June 1

Broader markets also declined with the BSE MidCap Select index declining 1.44 per cent and BSE SmallCap Select index by 0.72 per cent.

Power dropped 2.90 per cent, followed by Capital Goods (2.44 per cent), Utilities (2.12 per cent), Industrials (2.11 per cent), Realty (2.03 per cent) and FMCG (2.02 per cent).

IT, Energy, Metal and Focused IT were the gainers.

A total of 2,761 stocks declined, while 1,589 advanced and 199 remained unchanged on the BSE.

In four days, the BSE benchmark has tumbled 2,221.62 points, or 2.90 per cent, and the Nifty tanked 649.1 points, or 2.70 per cent.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 21,105.86 crore on Friday, according to exchange data.

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.)