Markets rebound as Sensex gains 260 points, Nifty edges up on global cues

The stock market closed in positive territory on Wednesday, June 4, with the key benchmarks, the Sensex and the Nifty 50, ending their three-day losing streak. Buoyed by encouraging global market trends and investor optimism, the Sensex gained 260 points to settle at 80,998 levels, while the Nifty 50 rose to close at 24,620 levels. This rebound reflects renewed confidence among traders and investors after a brief period of consolidation and profit-taking.

Shrikant Chouhan, Head – Equity Research, said, “Today, the benchmark indices witnessed range-bound activity. The Nifty ends 70 points higher, while the Sensex was up by 260 points. Among sectors, the Digital index gained 1.35%, whereas selective financial stocks registered intraday profit booking at higher levels."

"Technically, after a muted open, the market witnessed some recovery from the lower levels. However, it is still trading below the 20-day SMA (Simple Moving Average) of 24,700/81300, which is largely negative. We believe that the current market structure is non-directional, and the intraday formation indicating range-bound activity is likely to continue in the near future. For traders, the key levels to watch are 24,450/80500 and 24,700/81300. A move above the 20-day SMA or 24,700/81300 could see the market rally toward 24,760–24,850/81500-81800. Conversely, a dismissal of 24,450/80500 could accelerate selling pressure, with the market potentially slipping to 24,320–24,300/80100-80000,” said Chouhan.

Looking ahead, analysts remain cautiously optimistic but advise monitoring key domestic economic indicators and global developments that could influence market momentum. The Reserve Bank of India’s upcoming policy review and quarterly corporate results will be critical in shaping near-term market trends. Investors are also keeping an eye on crude oil prices and inflation data, which continue to impact market dynamics and valuation assessments.