Nifty and Bank Nifty Prediction For Tomorrow 1 June 2023

Nifty and Bank Nifty Prediction For Tomorrow 1 June 2023: On a dramatic day in the last trading session of May, the benchmarks ended in the negative. The deeper fall in the Nifty and Bank Nifty left buyers in shock in the first half, though the fall was eminent due to the overbought condition across benchmarks. A decline in Asian peers and US futures pushed indices into the red. But during the second half, a massive bounce was witnessed, erasing half of the losses.

Index Highlights:

• BSE Sensex opened at 62,839.97, touching a high of 62,876.77. It closed at 62,622.24 with a decline of 346.89 points or 0.55% from the previous day.
• Nifty 50 opened at 18,594.20, reaching a high of 18,603.90. But ended the day at 18,534.40 with a decrease of 99.45 points or 0.53%.
• Nifty Bank started at 44,318.00 and peaked at 44,339.05. Bank Nifty closed at 44,128.15, experiencing a decline of 308.20 points or 0.69% from the previous day.

In addition to the benchmarks, the broader market indices shine today. Nifty Midcap 100 rises 0.37% and Nifty Smallcap 100 surges 1.35% amidst a 0.5% fall in benchmarks.

During the mid-session of the day, both the Nifty and Bank Nifty showed a substantial decline of around 1 percent and 1.4 percent, respectively. But in the last hour, buyers were more aggressive than sellers, which helped benchmarks prevent an ugly monthly closing.

Moreover, the Nifty Oil & Gas index witnessed a sharp decline of 1.26%, the Nifty Metal fell by 0.78%, and the Nifty Real Estate rose by 0.76%.

Among the top gainers on the Nifty 50 were TECHM, BHARTIARTL, KOTAKBANK, SBILIFE, SUNPHARMA, and ASIANPAINT, while ONGC, NTPC, AXISBANK, RELIANCE, and HDFC faced losses.

Nifty and Bank Nifty Prediction for Tomorrow(1st June 2023)

After a very volatile session of the day, the Nifty and Bank Nifty may exhibit more volatility tomorrow due to the weekly F&O expiry. The global market sentiment is negative, with declines in the USA and Europe. As long as Nifty trades above 18550, the outlook will be positive and strong. For the Bank Nifty, if it sustains above 44100-44150 the bias will be bullish for tomorrow.

Both the Nifty and Bank Nifty charts appear to be similar, which shows a divergence in multiple time frames like hourly and daily. On a daily chart, it seems to be a setup that is mildly negative. But on the hourly chart, the indices show a reversal from the bottom and may continue their momentum on the higher sides. 

Price Actions of Nifty and Bank Nifty

The price movements of Nifty and Bank Nifty indicate that Nifty is showing a more pessimistic outlook than Bank Nifty. The Bank Nifty, however, is very erratic, and unless it is able to maintain itself above crucial levels, it may continue to decline.

Market deterioration is likely to be visible in the first half of the indices open below today’s lows. The weekly F&O expiry, however, raises the possibility of quick rebounds as well as opportunities for scalping and bottom fishing.

It’s crucial to respect levels and follow the current trend tomorrow rather than deviating from the market’s trend. In order to navigate the market, this strategy will be helpful.

Technical Analysis of Nifty

Nifty 50 forecasts for Thursday (1st June 2023)

Nifty 50 Levels for Thursday, June 1, 2023

Nifty 50 Target for Tomorrow(Prediction): Upside 18580-18640 and Downside 18450-18340

Technical Analysis of Bank Nifty

Nifty Bank forecasts for Thursday (1st June 2023)

Nifty Bank Levels for Thursday, June 1, 2023

Nifty Bank Target for Tomorrow(Prediction): Upside 44350-44600 and Downside 43800-43370

Global Market Outlook News

In today’s trading session, U.S. stocks faced a decline as investors anxiously awaited a significant vote on the debt ceiling deal. Here’s a closer look at the market movements and key developments:

Index Performance:

• The Dow Jones Industrial Average fell by 251 points or 0.76% at 9:18 EST.
• The S&P 500 experienced a 0.82% drop.
• The NASDAQ Composite remained weak and fell to 0.75%.
• DAX is cracking 245 points or 1.54%.
• CAC 40 is also nosedived by 1.54 while FTSE 100 is facing a decline of 1.07%.

Debt Ceiling Vote:

• The House of Representatives is expected to vote later today on a crucial deal concerning the debt ceiling. The agreement includes raising the debt ceiling until January 2025, implementing spending limits, reallocating funds previously allocated for COVID relief, and bolstering the Internal Revenue Service.
• If the deal is approved, it will proceed to the Senate, where lawmakers face a tight deadline of June 5 to avoid a potential U.S. default.

Market Impact:

• The ongoing uncertainty surrounding the unresolved debt ceiling issue has weighed on markets for several weeks, although recent breakthroughs have provided some relief, particularly for tech stocks.
• The S&P 500 and Nasdaq are poised to conclude May on a positive note, with the Nasdaq potentially achieving its strongest May performance in three years.

Jobs Report:

• In April, job openings in the U.S. rose, breaking a three-month decline and indicating continued tightness in the labor market. The latest Job Openings and Labor Turnover Survey (JOLTS) report revealed a total of 10.1 million job vacancies, surpassing expectations and the previous month’s figure.
• This data is crucial for the Federal Reserve’s assessment of inflation and its ongoing efforts to manage it. The Fed has been closely monitoring labor market conditions as it guides its policy decisions, aiming for a softening in the job market while combating elevated inflation.

Commodity, Dxy, Bond Yield Movement:

• Oil prices declined, with Crude Oil WTI Futures down 0.86% to $68.86 a barrel and Brent Oil Futures down 0.56% to $73.30 a barrel.
• Gold Futures experienced a 0.69% increase, reaching $1,990.
• The US dollar index is up by 0.29% and is trading at 104.382.
• The US 10-year bond is trading at 3.654 and down by 1.26%.

Conclusion

Indian benchmarks bounced sharply in the second half of today. Indices partially recovered from earlier losses and create a mildly bullish outlook for tomorrow. However, US stocks faced declines due to concerns over the debt ceiling and strong job data. It impacts global markets, including Europe. As a result, the SGX Nifty is indicating a fall of 106 points, reflecting weak global cues. 

The opening of the Indian market tomorrow depends on the performance of US stocks. A higher close in the US market would support a strong start. But a lower close may lead to a weak opening tomorrow which may violate today’s lows.

So, traders should exercise caution due to the weekly F&O expiration tomorrow. Market participants expect heightened volatility and the need for proper risk management.