Despite lacking strength at higher levels, bulls held firm at the 24,500 mark, with strong support from the Nifty Bank—driven by the outperformance of PSU banks.

Here’s what moved the markets on Monday, June 2:

Positive Domestic Cues:

A solid GDP growth number, strong GST collections for May, and hopes of further interest rate cuts from the RBI kept domestic sentiment upbeat. While a rate cut seems certain, the debate now shifts to the size and pace of future cuts.

Negative Global Cues:

Global tensions kept markets on edge. The US and China clashed over tariffs again, President Trump hiked duties on steel and aluminium to 50%, and tensions escalated in the Russia-Ukraine conflict—spiking crude oil prices.

This mix of cues led to a volatile session. The Nifty dropped nearly 220 points early in the day but recovered in the second half—continuing a pattern seen over the past few weeks.

Key Technical Highlights:

Nifty holds strong:

The index stayed within its familiar 24,500–25,000 range. While there’s weakness at higher levels, bulls are protecting the downside well.

PSU Banks shine:

PSU Bank index rose 2.5% on Monday, making it the top-performing sector for the second consecutive session. However, over the past year, the index is only up 5%.

Nifty Bank near record highs:

Thanks to PSU banks, Nifty Bank closed near the upper end of its consolidation zone (55,800–55,900) and is close to its all-time high of 56,098. Over the past year, Nifty Bank has outperformed the Nifty, gaining nearly 20%.

Analyst View:

HDFC Securities’ Nagaraj Shetti:

Nifty remains choppy with a weak bias. A move toward 24,900 is possible in coming sessions. Key support is at 24,500.

LKP Securities’ Vatsal Bhuva:

Despite a gap-down start, Nifty closed above its 20-Day EMA, showing buying interest at lower levels. However, RSI divergence and bearish crossover point to weak momentum. Immediate support lies at 24,630, with resistance in the 24,860–25,070 zone.

Markets remain stuck in a narrow range, but strong buying at lower levels is keeping bulls hopeful. Watch 24,500 on the downside and 25,000 on the upside for directional cues in the near term.