Trade setup June 2: Sensex turns negative, forms small bearish weekly chart candle

Domestic equity markets ended the week on a cautious note, with the BSE Sensex closing 182 points lower at 81,451.01 on Friday. The index slipped into negative territory amid losses in metal, IT, and auto stocks, although banking shares lent some support. Market sentiment stayed muted as investors remained wary of global trade developments, especially after a US court upheld former President Trump’s tariff policies.

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Sensex is currently showing signs of weakness on intraday charts and has formed a small bearish candle on the weekly chart — a sign that the market could remain range-bound in the short term.

Key Levels to Watch on Monday (June 2):

Support: 80,900 (also the 20-day Simple Moving Average)

Resistance: 82,200

As long as the Sensex remains within the 80,900–82,200 range, a sideways trend is expected. However, a breakout above 82,200 could trigger a move towards 82,900, and potentially even 83,700. On the downside, a break below 80,900 may push the index down to 80,300 or even 79,800, Chouhan cautioned.

Looking ahead, market focus will shift to the upcoming RBI Monetary Policy Committee (MPC) meeting. With inflation currently under control, analysts believe the central bank may consider measures that support economic growth.

Disclaimer: This article is intended for informational purposes only and should not be taken as financial advice. Investors are advised to consult certified professionals before making any trading or investment decisions.