Will Sensex, Nifty Break Their Losing Streak? Key Levels to Track on June 4

Sensex and Nifty were down for the third straight session on June 3 because investors were discouraged by weak global markets and growing political tensions. Nifty 50 fell beneath the key 24,600 point and the Sensex declined more than 650 points, as sellers took over the market. Spotting early signals, Gift Nifty futures started higher today, trading at 24,724 and grew by 0.2 percent, suggesting Indian markets might rebound.

Market Snapshot: June 3

Both the Sensex and Nifty faced a sharp decline on Monday because of weak international trends and cautious investors. Foreign institutional investors (FIIs) sold a huge amount of shares, totaling ₹2,854 crore. At the same time, domestic institutional investors (DIIs) bought shares worth ₹5,908 crore which helped the market through its dips. So far this year, FIIs have sold shares worth ₹1.27 lakh crore, while DIIs have bought shares worth ₹2.86 lakh crore, showing that global and domestic players are not participating in the same way.

Key Technical Levels for Nifty on June 4

Support Zone: A decisive break below 24,500 may lead to further weakness, with the next support located at 24,300.

Resistance Zone: On the upside, a breakout above 24,850 could trigger short covering, potentially taking the index toward the 25,000 mark. However, the index is expected to face stiff resistance at this level.

Momentum Indicator: The Relative Strength Index (RSI) is hovering near the neutral 50 level, suggesting waning bullish momentum. Until Nifty breaches the 24,850 barrier decisively, the market is likely to follow a "sell on rise" strategy.

Bank Nifty: Bulls and Bears Battle Near Key Resistance

According to Dhupesh Dhameja of SAMCO Securities, the Bank Nifty remains resilient, trading above its 10-day Exponential Moving Average (EMA) and close to a critical resistance zone.

Support Levels: The zone between 55,500 and 55,300 is acting as a strong support, reinforced by substantial put writing. This suggests that buyers are still defending lower levels.

Resistance Levels: A sustained move above 56,100–56,150 is needed to initiate a rally towards the 56,500 level.

Downside Risk: A break below 55,300 could trigger a quick decline toward 55,000–54,700, though such dips may attract opportunistic buying.

Momentum: The daily RSI has dipped below 60, pointing to fading bullish strength and supporting a short-term range-bound outlook with a slightly bearish bias.

Market Sentiment Indicators

India VIX: Volatility eased by 3.51% to 16.55, but remains elevated above the comfort zone of 15, indicating underlying uncertainty and the potential for volatile price swings.

Put-Call Ratio (PCR): The Nifty PCR dropped to 0.65 on June 3 from 0.82 previously. A ratio below 0.7 reflects a bearish undertone, as more Call options are being sold relative to Puts — a sign that traders are hedging against further downside.

Outlook

With Gift Nifty pointing to a higher open, the market could attempt to snap its three-day losing streak. However, key resistance levels on both Nifty and Bank Nifty will need to be cleared for any meaningful upside. Elevated volatility and mixed sentiment indicators suggest traders should remain cautious and watch for confirmation of trend reversals before taking directional bets.

Bottom Line: All eyes will be on the 24,850 resistance for Nifty and 56,150 for Bank Nifty. A breach above these levels could fuel a short-term rally, but until then, the market is expected to remain choppy with a slight bearish tilt.