Private Bank Index Lost The Most, Shedding 1.25%; "The intraday market texture is weak"
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, June 3, 2025: Today, the benchmark indices witnessed profit booking at higher levels. The Nifty ends 174 points lower, while the Sensex was down by 636 points. Among sectors, the Private Bank index lost the most, shedding 1.25 percent, whereas despite the weak market sentiment, the Reality and Defense indices outperformed, rallying over 1 percent. Technically, after a positive open, the market slipped below the 20-day SMA (Simple Moving Average) or 24,700/81300, and thereafter, selling pressure intensified. On daily charts, a long bearish candle has formed, and on intraday charts, a lower top formation is holding, which is largely negative.
We believe that the intraday market texture is weak, but a fresh sell-off is possible only if the level of 24,450/80500 is breached. Below this, the index could decline to 24,320–24,300/80100-80000. On the upside, if the index moves above 24,600/81000, a quick pullback rally towards the 20-day SMA or 24,700/81300 could occur. Further upside may also continue, potentially lifting the market up to 24,760/81500.
Satish Chandra Aluri, Lemonn Markets Desk, adds: Markets today extended losses. Benchmark indices extended losses on Tuesday closing down for third consecutive session. Broaded indices ended mixed with losses in Midcap index while the Smallcap index was flat.
Broad-based sectoral weakness weighed on sentiment, with indices like Bank, Consumer Durables, IT, Oil & Gas, Power, and Private Bank down. However, the Nifty Realty index bucked the trend and posted gains on expectations of a potential rate cut at the RBI’s upcoming monetary policy meeting on June 6.
Key factors behind the decline included rising global trade tensions after the U.S. announced a sharp hike in steel and aluminium tariffs, hurting metal exporters and investor sentiment. Weak U.S. and Chinese manufacturing data also signaled slowing global demand. Additionally, concerns over the RBI’s policy guidance and rising U.S. bond yields—amid discussions of a massive $3.8 trillion tax-and-spend bill—added to the risk-off tone.
Adani Group stocks came under pressure after reports of a U.S. probe into alleged sanctions violations, dragging down large-cap indices further.
Technically, Nifty continued to face resistance at 24,850–24,900 on the upside and broke the support on downside below 24600. Market can experience further downside towards 24,400 if momentum remains weak. We expect continued volatility and rangebound movement in the near term until RBI policy outcome.
