Trade Setup for June 2: Nifty Stuck in Tight Range Amid Rising Trade Tensions, RBI Decision in Focus
The strong rally from the second half of Thursday’s expiry session didn’t last, as the Nifty 50 fell on the first day of the June series. It dropped by 83 points and ended the day below 24,800, closing at 24,751.
Midcap and Smallcap indices once again showcased their outperformance relative to the benchmark, though they too ended marginally lower. The Nifty Midcap 100 Index fell by a mere 0.06%, while the Nifty Smallcap 100 Index corrected by just 0.03%.
Profit booking in Metal, Technology, and IT stocks primarily weighed on investor sentiment.
Except for Nifty PSU Banks and Media, all other sector indices ended the day with losses. The biggest drops were seen in Nifty Metal, IT, and Auto stocks.
The Nifty PSU Bank index rallied by 3%, fueled by widespread anticipation of a potential interest rate cut by the Reserve Bank of India (RBI) in its upcoming meeting on June 6. The central bank may reduce the interest rate for the third consecutive time in its next monetary policy meeting (MPC).
Shares of Ola Electric Mobility Ltd. fell as much as 10% on May 30, after the company’s net loss widened from last year during the January-March quarter. Ola Electric’s net loss widened to ₹870 crore during the March quarter, compared to a net loss of ₹416 crore during the same quarter last year. Revenue also declined by 62% from last year.
Suzlon Energy shares rose by 14% after the company announced its results for the March quarter. Its net profit doubled compared to the same period last year, even without counting a ₹600 crore tax credit that helped boost the final profit figure.
Mazagon Dock fell 7% after its numbers for the fourth quarter were dented due to higher expenses. However, the company has surpassed its full-year guidance on the revenue and margins front.
Going ahead, Vodafone Idea, Apollo Hospitals, AstraZeneca, Sun TV, Nykaa, Inox Wind, among others will be in the spotlight tomorrow, as these companies reported their Q4 numbers after market hours on Friday.
Foreign investors were net sellers in the cash market on Friday, while domestic investors were net buyers.
In key macro developments, India’s GDP growth for Q4 accelerated to 7.4%, beating Street estimates of 6.7%, while the full-year FY25 growth came in at 6.5%. This reaffirmed India’s position as the world’s fastest-growing economy.
Globally, concerns over economic growth persisted after the US economy contracted 0.2% in Q1CY25, albeit slightly better than the expected -0.3%, raising questions around future Fed policy moves.
Next week, interest rate-sensitive sectors, particularly PSU banks, are likely to remain in focus amid growing hopes of an RBI rate cut. Additionally, the release of monthly auto sales and volume data could trigger sector-specific moves in the automobile space.
Siddhartha Khemka of Motilal Oswal expects markets to maintain its positive momentum in June on the back of strong Q4 GDP numbers, hopes of RBI rate cut and consistent institutional inflows.
What do the Nifty 50 charts indicate?
The Nifty 50 index remained volatile with a slightly negative bias on the first day of the June series.
According to Nandish Shah of HDFC Securities, the index is still struggling to move out from the consolidation zone of 24,500-25,100. “20 days EMA is placed at 24,630 is immediate support followed by 24,500. On the upside 24,900 could offer short term resistance.”
“Nifty has been struggling to move beyond a certain level. Immediate support is placed at 24,700; a breach below this level could lead to a decline towards 24,500. On the higher side, 24,800 is likely to act as a crucial resistance, as call writers have built significant positions at that level,” said Rupak De of LKP Securities.
What do the Nifty Bank charts indicate?
The Nifty Bank index ended the session at 55,749.70, up 0.37%. On the weekly basis, the index gained 0.63%, while the monthly performance remained positive, with a rise of 1.20%
For the past few weeks, the index has been moving sideways without a clear direction, but it’s still trading above all its important moving averages.
Om Mehra of SAMCO Securities said the resistance is placed near the 56,100 mark. However, a decisive and successive close above this level would be crucial to confirm trend continuation and potentially open the path toward new highs. On the lower side, immediate support is seen around 55,200, with stronger support at 54,500. Any pullback towards these zones would be considered a normal corrective move within a broader bullish setup.
Until a clear breakout occurs, the Nifty Bank index may continue to oscillate within this band. A buy on dip remains favorable with the current trend, Mehra said.
Here are the stocks to watch ahead of Monday’s trading session:
- Vodafone Idea on Friday (May 30) reported a narrowing of losses for the March quarter to Rs 7,166.1 crore, and its board greenlit fundraising of up to ₹20,000 crore subject to shareholders’ approval and statutory nods.
- Coal India files DRHP for another subsidiary, Bharat Coking Coal, with SEBI, NSE & BSE. The proposed IPO of BCCL to comprise an offer for sale of up to 46.57 crore shares by Coal India.
- Alembic Pharma: US FDA issues Form 483 with four observations for API-I and II Units at Panelav. None of the observations are related to data integrity. An unannounced and routine inspection was conducted by US FDA from May 26-31, 2025.
- IndiGo has been granted a one-time last and final extension of three months upto August 31st for damp leased aircraft from Turkish Airlines.
- IRCON bags an EPC order worth Rs 1,068.3 crore from East Central Railway.
- The board of BPCL approves investment in JV Tikitar and Shell India that manufactures and markets Bitumen. Invst in Tikitar and Shell India is subject to approvals from DIPAM and other regulatory approvals.
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