Market Overview
The recent intraday trading session was highly volatile due to the ongoing election results, with the Nifty index trading within a wide range of 8.25%. The Nifty closed the day with a significant decline of 5.935%, reflecting the uncertainty and tension in the market. The final election results, expected after market hours, suggest that tomorrow’s trading session on June 5th will also be highly volatile.
The India VIX, a measure of market volatility, spiked to 31.71 during intraday trading and closed at 25.89, indicating heightened market anxiety.
Market Expectations on 5th June 2024
Given the current market sentiment and the anticipated election results, a big gap opening is expected tomorrow. Traders are advised to adopt neutral trading strategies to navigate the expected wide range of market movements over the next two days.
Key Levels to Watch
NIFTY
- Support (S): 20800, 20500
- Resistance (R): 22500, 22800
BANKNIFTY
- Support (S): 45800, 45000
- Resistance (R): 47900, 48500
Trading Strategies
SPARC (Sun Pharma Advanced Research Company)
- Action: BUY
- Entry Level: 200
- Target (TG): 220, 235
- Stop Loss (SL): 185
Rationale:
SPARC has shown potential for upward movement and buying at the current levels can be profitable. The targets are set at 220 and 235, with a stop loss at 185 to manage downside risk.
RAILTEL Corporation of India Ltd.
- Action: SELL
- Entry Level: 400-410
- Target (TG): 365, 345
- Stop Loss (SL): 415
Rationale:
RAILTEL is expected to decline, making it a good candidate for a short position. Selling within the range of 400-410 with targets at 365 and 345 offers a strategic play, while the stop loss at 415 helps limit potential losses. Get daily live market researched trades here – https://t.me/SMTStockMarketToday
Detailed Analysis
Nifty Index Analysis
The Nifty index’s wide trading range and significant decline suggest market participants are cautious. The support levels of 20800 and 20500 are crucial for bulls to maintain, while resistance at 22500 and 22800 will be key for any upward movement. The outcome of the elections will likely be a major catalyst for the next move in the index.
BankNifty Analysis
BankNifty’s support levels at 45800 and 45000 will be essential to watch. Resistance at 47900 and 48500 indicates the upper limits where selling pressure might emerge. Bank stocks tend to be sensitive to political and economic changes, so the results could cause significant fluctuations.
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Conclusion
In light of the expected volatility, traders should exercise caution and consider neutral strategies to hedge against sudden market movements. Keeping a close watch on the key support and resistance levels for Nifty and BankNifty will be critical. The suggested trades in SPARC and RAILTEL offer opportunities for profit while managing risk effectively.
Special Note
Wide trading ranges are anticipated for the next two days. It is advisable to stay updated with the latest news and adjust trading strategies accordingly to navigate the volatility.
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