Indian stock market: The Indian stock market experienced a highly volatile week and ultimately closed in negative territory, with benchmark indices extending losses for a third straight session.
As a result, the slipped 0.72% to end at 23,547.75, while the Sensex declined 0.85% to close at 74,775.74. In contrast, broader markets continued to show resilience, with the mid-cap index rising 0.54% and the small-cap index advancing 1.20%, reflecting continued selective buying interest beyond large-cap stocks.
Stock market next week
Nifty 50
On Friday, the opened with a marginal gap-down of 5 points at 23,902.15, reflecting a cautious start to the session. The index registered its intraday high of 24,002.80 within the first few minutes of trade. However, sustained selling pressure emerged thereafter, dragging the index steadily lower throughout the session. The weakness intensified during the latter half as the index slipped towards its intraday low of 23,484.75 in the final few minutes of trade before eventually settling at 23,547.75. The index ended the day with a decline of 359.40 points or 1.50% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a bearish candlestick pattern indicates sustained selling pressure throughout the session. The close near the intraday low reflects weakness in short-term momentum and suggests that sellers remained dominant across the day.
“From a technical perspective, immediate support is placed in the 23,200–23,250 range, while resistance is observed between 23,750 and 23,800 levels. The Relative Strength Index (RSI) stands at 43.37, indicating weakening momentum and a cautious undertone in the near term. In the derivatives segment, notable call writing was seen at the 23,700 strike, followed by 23,800, while significant put writing was observed at 23,500 and 23,300 levels, indicating immediate support near lower zones while resistance remains firm at higher strikes,” said Bagadia.
Bank Nifty
The Bank Nifty index opened with a gap-down of 105.55 points at 54,748.30, reflecting weakness in the banking space at the opening bell. The index witnessed some buying interest initially and registered its intraday high of 55,184.45 during the first half of the session. However, the momentum failed to sustain at elevated levels as continuous selling pressure emerged thereafter. The weakness persisted throughout the latter half of the session, dragging the index towards its intraday low of 54,116.15 in the final few minutes of trade before eventually settling at 54,239.20. The index ended the session lower by 614.65 points or 1.12%.
Bagadia said that on the daily timeframe, the formation of a bearish candlestick pattern indicates persistent selling pressure and weakness in the banking segment. The close near the day’s low reflects cautious sentiment and lack of sustained buying support at higher levels.
“From a technical standpoint, immediate support is placed in the 53,900–54,000 range, while resistance is seen in the 54,800–55,000 zone. The Relative Strength Index (RSI) stands at 46.91, indicating weakening momentum though the index still trades near the neutral zone. Sustaining above immediate support levels will remain important to avoid further downside pressure in the near term,” he added.
He further suggested traders to closely monitor immediate support zones, as sustained weakness below these levels could trigger further downside pressure, while any recovery would require strong follow-through buying near lower levels, as the recent price action suggests a highly volatile and weak trading session with both benchmark indices witnessing sharp selling pressure after failing to sustain gains at higher levels.
Broader market sentiment remained negative, with declining stocks significantly outnumbering advancing stocks, indicating widespread weakness across sectors. Most sectoral indices traded in the red, with notable pressure visible in Auto, Metal, Oil & Gas, Financial Services, Pharma, and Consumer-related sectors, while selective resilience was seen in the IT segment, he said.
Stocks to buy
Sumeet Bagadia has recommended three on Monday, 1 June. The three stock picks by Bagadia are – Yes Bank, IFCI, and SBFC Finance.
1] Yes Bank: Buy at ₹23.15 | Target Price: ₹25 | Stop Loss: ₹22.25
2] IFCI: Buy at ₹68.53 | Target Price: ₹75 | Stop Loss: ₹65
3] SBFC Finance: Buy at ₹94.30 | Target Price: ₹103 | Stop Loss: ₹89.80
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.