Date: June 3, 2026
Indian benchmark indices are expected to open on a subdued note on June 3 despite positive global cues. GIFT Nifty indicated a weak start, trading 0.06% lower at 23,477.50 and signaling a potential 30-point decline at the opening bell. Elevated crude oil prices, ongoing geopolitical tensions in West Asia, and uncertainty surrounding US-Iran nuclear negotiations remain major concerns for investors.
The Nifty50 closed 100 points higher, or 0.43%, at 23,483.55 on June 2, while the Sensex gained 382 points, or 0.52%, to settle at 74,649.84. Analysts noted that Nifty rebounded sharply from an intraday low of 23,229, forming an open-low candle pattern that suggests strong buying interest near support zones.
Brent crude oil prices climbed back toward $98 per barrel after talks between the United States and Iran remained stalled. Iran's refusal to halt uranium enrichment and disagreements over the transfer of enriched uranium have delayed progress on a potential agreement. Meanwhile, reports of a fresh US military strike on Iran’s Qeshm Island have further heightened geopolitical concerns.
Global markets remained resilient despite these risks. On Wall Street, the Dow Jones gained 0.45%, while the S&P 500 and Nasdaq advanced 0.13% and 0.03%, respectively, supported by continued strength in artificial intelligence-related stocks. US labor market data also boosted sentiment, with job openings rising by 731,000 to 7.6 million in April.
Asian markets traded mixed on Wednesday. Japan’s Nikkei surged more than 2%, China’s Shanghai Composite edged higher, and Singapore markets advanced. However, Hong Kong’s Hang Seng declined over 1%, while South Korean markets remained closed due to local elections.
Technical View on Nifty
Market analysts identify the 23,200–23,300 zone as a critical support area for Nifty50. Options data for the weekly expiry indicates the highest Put Open Interest at 23,300, reinforcing support around that level. On the upside, the 24,000 strike holds the highest Call Open Interest, with significant concentrations at 23,700 and 23,800, indicating resistance in that range.
The 20-day Exponential Moving Average (EMA) is expected to act as an important resistance level, while a sustained hold above 23,300 could support further consolidation before the next directional move.
FII and DII Activity
Foreign Institutional Investors (FIIs) continued their selling streak on June 2, offloading equities worth ₹8,362.92 crore. Domestic Institutional Investors (DIIs) provided support by purchasing shares worth ₹9,589.32 crore. According to NSDL data, Foreign Portfolio Investors (FPIs) have sold ₹24,109 crore worth of assets during the first two trading sessions of June.
Crude Oil Remains Key Risk
Crude oil prices remained elevated above $96 per barrel amid uncertainty over a potential US-Iran peace agreement. Rising energy prices continue to be a significant risk factor for emerging markets, including India, due to their impact on inflation, corporate margins, and trade balances.
