In the previous session, The Nifty 50 remained under relentless selling pressure on June 1, declining 0.7 percent and extending losses for the fourth consecutive session. The index continued to trade below the 50 percent Fibonacci retracement level of the April rally and remained below all key moving averages, reflecting sustained weakness in the broader market structure.
Technically, the Nifty formed another long bearish candle on the daily chart and registered an upper shadow for the fourth straight session, indicating persistent selling pressure at higher levels and lack of follow-through buying. The short- and medium-term moving averages continued to slope downward, reinforcing the prevailing bearish trend.
Momentum indicators also weakened further. The RSI slipped to 40.27 and witnessed a bearish crossover, while the MACD turned negative with a bearish crossover and a red histogram bar appearing after four consecutive green bars. These developments indicate weakening momentum and strengthening bearish sentiment in the near term.
From a technical perspective, the 23,250 level remains a critical support zone for the index. A decisive breakdownbelow this level could accelerate selling pressure and expose the next downside target around 23,100. On the upside, immediate resistance is placed near 23,550, followed by the stronger hurdle at 23,700. A sustained move above these levels will be required to improve market sentiment.
Derivatives data points to a bearish undertone. The Nifty Put-Call Ratio (PCR) declined further to 0.69 on June 1 from 0.74 in the previous session, marking its lowest level since February 27. The sharp fall in PCR reflects increasing call writing activity and cautious positioning among traders.
India VIX, the market fear gauge, extended its upward trend for another session, rising 2.21 percent to 16.54 after an 8 percent surge in the previous session. The increase in volatility indicates growing discomfort among bulls. Analysts believe that a move above the 17 level could increase downside risks, while a decline below the 15 mark would be necessary for confidence to return.
Option chain positioning suggests immediate support around the 23,250 strike, while resistance is visible near the 23,500–23,700 zone where significant call writing activity has emerged. This reinforces the ongoing bearish bias in the market.
The Nifty Bank also remained under pressure and formed a long bearish candle on the daily timeframe. The banking index continued to trade below all key moving averages, indicating that bears remain firmly in control.
Technically, Bank Nifty closed below the 50 percent Fibonacci retracement level of the April rally and also remained below the 38.2 percent Fibonacci retracement level of the February-to-April correction. This suggests continued weakness in the broader banking space.
Momentum indicators reflected a similar trend. The RSI declined to 43.02 with a negative crossover, while the MACD edged lower toward the signal line with fading positive histogram bars. These signals indicate weakening bullish momentum and the possibility of a continuation of the corrective phase.
Immediate support for Bank Nifty is placed around 53,000–52,800, while resistance is seen near 54,400–55,150. A decisive move above resistance levels will be required to improve the short-term outlook for the banking index.
Overall, the technical setup remains weak with benchmark indices trading below key moving averages, momentum indicators turning negative, and volatility rising. Unless Nifty manages to hold above 23,250 and reclaim the 23,700 zone, bears are likely to maintain control in the near term, keeping market sentiment cautious and volatile,” says Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.
