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Nifty Prediction for Tomorrow, 5th June 2024. Where will Nifty Go?
The Indian stock market experienced a significant downturn, with PSUs, energy, realty, and oil and gas sectors hit hard. The BJP government's weak performance and uncertainty due to election results drove this. Sectors aligned with a potential Congress government, such as IT, FMCG, and Pharma, saw varied performance. Tomorrow's Nifty is expected to be impacted by election results, potentially falling to around 21,500, although some support is evident. Intraday predictions and trading levels are outlined, with a recommendation to go short if the market falls below 21,800.
Well, there is no need to summarize today’s market – as almost all of you know today’s situation, but the worst part is the multi-baggers of the last year fell around 20 – 25% including RECL, BEL, PFC, PNB, HAL, Mazagon Dock Shipbuilders, Hudco, Titagarh Rail Systems, Ircon, and many others.
In short word, all the PSU stocks saw a heavy sell-of on Tuesday, and many of them hit the lower circuit twice, and that’s concerning – but the worst part is that the SBI fell more than 18% in intraday which is in my view the worst single-day fall in SBI in a decade (maybe I am wrong).
In fact, not only the PSUs, but the Energy, Realty, and Oil and Gas Sectors also swiped by more than 10% each – but the shocking thing is that the Bank Nifty is just 0.5% away from its first lower circuit which is crazy – and the reason for this selling is kind of silly – The current Government is not going to get the majority (LoL, this can’t be a reason for this kind of fall).
On top of that, we saw buying in some sectors that are on the radar of the Congress Government, including IT, FMCG, and Pharma – where the IT and Pharma sector was down by around 0.90% and FMCG is up by 0.94% where the top gainers were HUL and Marico.
Looking at the Nifty 50 Stocks,
Top Gainers: HUL, Nestle, Britannia, Hero MotorCorp, Tata Consumer
Top Losers: Adani Ports, Adani Enterprises, ONGC, SBI, L&T
Also Read: 7 Best Solar Energy Stocks in India for 2024. CAGR Growth of 30%
Nifty50 Prediction for Tomorrow, 5th June 2024
This is the worst day for the Indian Market since March 2020 when the Nifty tanked around 8% making an Intraday low of 21,821 which is almost 2000 points low from the all-time high, it made on the previous trading day.
well, you all know that this sell-off is driven by the weak performance of the BJP government and more likely because of the wave created by the Exit Polls that drove the market higher on Monday, but the election results tell a totally different story, indicating that BJP alone can not get the majority – and this is the most prominent reason of the fall in the market.
Where, the PSU stocks or any other stock that tends to benefit from the existing government fell the most including some large-cap PSU Stocks like RECL, BEL, SBI, and PNB, with some other government-supported stocks, like Adani Ports (all Adani stocks), L&T, IndusInd Bank, Tata Steel, Ambuja Cement along with Energy and Oil & Gas Stocks – that somehow gets benefit from the Modi Government Scheme.
What to Expect on Tomorrow, 5th June 2024
Looking ahead to Wednesday, I think Nifty may continue to fall but it most likely will be affected by the final results, as of now, the election results are clear that the BJP Government is not going to make the Government alone – but it will definitely make Government with collation, and this will affect the investors.
So, Tomorrow, Nifty may open a little gap down, taking it around the 21,500 level – but as of now, there is high volatility in the market, so it’s hard to guess the moves, but in my opinion, it will fall – more or less – it will depend on the Final Results.
Looking at the Technical chart, Nifty seems to be taking support around its previous support level of 21,800 but it looks like sellers are being aggressive and buyers are in a panic and this may take Nifty down for Tomorrow, 5th June 2024.
But – But- But – as of Now, Nifty is taking support on its support level – then, it may trade higher tomorrow, as India Vix is cooling off despite Nifty falls after the rise in the mid-trading session.
So here are the trading levels for Tomorrow – 21,500 – 22,200
Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 21,000 (73.95L) | 22,500 (45.3L) |
| 21,500 (34.93L) | 22,000 (43.18L) |
| 22,000 (35.39L) | 22,800 (23.12L) |
Nifty50 Support and Resistance for 5th June 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 21,800 | 22,000 |
| 21,600 | 22,200 |
| 21,500 | 22,500 |
Nifty Trade Strategy for 5th June 2024
It looks like the bears are holding the grip tightly as the election results didn’t come as expected, and the market witnessed the highest signal day fall since March 2020 (COVID-19).
Looking at the technical chart, then it seems that the Nifty is taking support at the 21,800 level, but in my opinion, this level may not provide a cushion for the Nifty in the coming sessions, and continuing the trend Nifty may fall further Tomorrow, towards the 21,500 level – but this is a matter of time and the subject of the final result of the election.
So, for Tomorrow,
I think you should go short if the market falls below the 21,800 level till the next resistance level.
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
