Trade setup for June 4: NIFTY50 lands again at its crucial support level of 24,500; reverse or break is the question!

Asian markets @ 7 am

• GIFT NIFTY: 24,724 (+0.24%)
• Nikkei 225: 37,759 (+0.84%)
• Hang Seng: 23,549 (+0.16%)

U.S. market update

• Dow Jones: 42,519 (+0.51%)
• S&P 500: 5,970 (+0.58%)
• Nasdaq Composite: 19,398 (+0.81%)

NIFTY50

• Max call OI: 25,000
• Max put OI: 24,600
• (Ten strikes to ATM, 5th June expiry)

Continuing the rebound in the previous trading session, June 03 started on a positive note where NIFTY50 opened with a slight gap up. However, the ongoing global trade tensions with 50% tariffs on steel and aluminium imports by Donald Trump spread pessimism across the globe. Thereby, irrespective of a positive start, NIFTY50 nose-dived throughout the session to close in red with 0.7% loss.

NIFTY50 has engulfed the entire bounce back of the previous session and has closed with a strong bearish candle. The index hit near the crucial support level of 24500 and has closed slightly higher at 24,542. Its a wait-n-watch situation for the index. In case NIFTY50 slides below 24,500, the next immediate support is the prior swing low at 24,460 followed by the gap filling level of 24,160 formed during 9th and 12th May 2025.

On the options data front, the 25,000 calls hold the highest open interest for the 5th June expiry, indicating a strong resistance at these levels. On the downside, the index holds the highest open interest at 24,600 puts, indicating strong support at these levels. On the upside, 24,850 would act as the resistance for now.

SENSEX

• Max call OI: 81,300
• Max put OI: 80,600
• (Ten strikes to ATM, 10th June expiry)

SENSEX too opened 3rd June session with a slight gap up but reversed its course at the start itself, dropping nearly 0.8%. SENSEX hit exactly the mentioned support zone of 80,500-80,700 and has closed just above the zone.

SENSEX too has formed a strong bearish candle on the daily chart and has closed near its crucial support. Volatility continues on the daily time frame, and it is to be seen whether SENSEX gives a another bounce back from the support or the support breakdown in the upcoming sessions. Charts show the next support at 80,000 mark. On the upside 81,340 would act as the resistance.

On the options data front, the index continued to face heavy resistance at the 81,300 levels due to the highest open interest on the call side. On the downside, the 80,600 puts hold the highest open interest, indicating strong support for the current weekly expiry.

Stock scanner

• Short buildup: ADANIPORTS, COAL INDIA, ADANIENT
• Top traded futures contracts: HDFCBANK FUT, ICICI BANK FUT
• Top traded options contracts: CDSL 1700CE, BSE 2700CE

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