Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 5 after Lok Sabha election results 2024

The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 22,060 level, a premium of nearly 150 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity indices suffered a massive bloodbath, to log its worst session in over four years, after the election results indicated that the incumbent Bharatiya Janata Party (BJP) might be reliant on alliance partners to return to power for a third time.

The Sensex crashed 4,389.73 points, or 5.74%, to close at 72,079.05, while the Nifty 50 settled 1,379.40 points, or 5.93%, lower at 21,884.50.

Also Read: Indian stock market: 8 key things that changed for market overnight – Gift Nifty to Lok Sabha election results 2024

Nifty 50 formed a huge, long negative candle on the daily chart with lower shadow. 

“Nifty recovered from near the lower support of 200-day EMA (Exponential Moving Average) around 21,250 levels. This support has been tested after October 2023. This candle pattern indicates an attempt of downside breakout of the larger high low range of 23,000 – 21,700 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend of Nifty is highly volatile with negative bias. Immediate support is placed for Nifty around 21,250 levels (20-day EMA). 

Once election result volatility settles down, the market could find direction for the near term. There is a possibility of an upside bounce in the Nifty from near 21,250 – 21,000 levels, he added.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — June 5

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

The Nifty 50 index witnessed heavy bloodbath on June 4 on the back of counting of votes of general election 2024 and closed the day sharply lower by 1,379 points. 

“The Nifty 50 index formed a substantial bearish candle, with key support levels identified at 21,400 and 21,200. If these levels fail to hold, the next supports are at 20,800 and 20,300. On the upside, the Nifty needs to break above 22,800 and 23,000 to regain strength and potentially reach new all-time highs of 23,500 and 23,700,” said Mandar Bhojane, Research Analyst at Choice Broking.

The India VIX surged by 31%, reaching 31.71 before settling at 26.7475, highlighting increased volatility and market fluctuations in response to the election results. This spike in volatility suggests that traders and investors should brace for continued turbulence.

Also Read: Stock market today: Trade setup for Nifty 50 to India VIX, five stocks to buy or sell on Wednesday — June 5

V.L.A. Ambala, Co-founder – Stock Market Today (SMT) believes it is likely that we can witness the next trading session, begin with a notable gap and display high volatility for the next two days. 

“Judging by the current market conditions, I recommend a neutral trading strategy until the market stabilizes. Considering these aspects, we could see the Nifty gaining support between 20,800 and 20,500 and facing resistance between 22,500 and 22,800 in the next trading session,” Ambala said.

Bank Nifty Prediction

The Bank Nifty index tanked more than 4,000 points, or nearly 8% to close at 46,928 on Tuesday.

“Bank Nifty experienced a sharp decline, finding support near its 200-day EMA at 46,200. Due to uncertainty surrounding the election results, we may observe additional selling pressure if Bank Nifty falls below its 200-day EMA,” said Rupak De, Senior Technical Analyst, LKP Securities.

Consequently, according to him, 46,200 will serve as an immediate support level, while 48,000 will act as the first resistance level for Bank Nifty.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Published: 05 Jun 2024, 07:49 AM IST