Indian equity markets witnessed a highly volatile session on Wednesday, with the Nifty closing at 23,405.60, down 77.95 points or 0.33%, while the BSE Sensex settled at 74,346.17, declining 303.67 points or 0.41%. According to ET Now, the index opened with a gap-down of 67.60 points at 23,415.95, reflecting weak sentiment at the start of the session. Selling pressure dominated the first half, dragging the index to an intraday low of 23,151.50, marking a drop of 332 points to its weakest point. However, strong buying interest emerged during the latter half of the session, helping the index recover sharply from lower levels. The Nifty IT index emerged as the worst-performing sector, declining 5.57% amid rising concerns around AI disruption and its potential impact on the traditional outsourcing business model. As per NDTV Profit, the Nifty's daily trading range stood at 308 points, its narrowest in four sessions, though it remained above the 10-day average for a fourth straight day, indicating that market swings remain higher than usual.
According to Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities, Nuvama Wealth Management Ltd and R R Kabel Ltd have been identified as the top stocks to buy for the June 1-June 5, 2026 week. Nuvama Wealth Management has staged an impressive recovery after taking support near its 20-day EMA on May 18, rallying nearly 10.5% from the lows. The stock continues to exhibit strong bullish characteristics with the RSI sustaining above the 60 mark, highlighting healthy momentum and sustained buying interest. Among Nifty stocks, Apollo Hospitals Enterprise, Tata Motors Passenger Vehicles, InterGlobe Aviation, and Max Healthcare Institute emerged as the top gainers during Wednesday's recovery session.
As reported by SBI Securities, the stock continues to exhibit strong bullish characteristics with the RSI sustaining above the 60 mark on both daily and weekly charts. The rising MACD histogram bars along with the MACD line trading above both the signal line and zero line further strengthen the positive outlook. The stock remains firmly positioned above its key short and long-term moving averages on both daily and weekly charts, indicating trend strength. Recommendation: Accumulate in the 1550-1560 zone with a stoploss of 1505, targeting 1665 in the short term.
According to SBI Securities, R R Kabel delivered a strong consolidation breakout on May 29 after trading within the 2049-1886 range since May 8. The breakout was backed by a sharp rise in volumes, indicating strong buying participation at higher levels. The stock has closed above the highs of the previous two weeks, indicating sustained bullish intent. The ADX has crossed above 25 on the weekly chart, signalling improving trend strength and stronger buyer dominance. Recommendation: Accumulate in the 2050-2060 zone with a stoploss of 1995, targeting 2200 in the short term.
As reported by ET Now, technical experts believe Wednesday's late-session rally has created an important support base, although sustained upside will require the index to overcome key resistance zones. The index formed a Dragonfly Doji candlestick pattern on the daily timeframe, indicating strong buying support emerging from lower levels after an initial phase of weakness. The long lower shadow reflects rejection of lower levels and suggests that buyers actively defended the lower support zone during the session. The Nifty currently trades 1.18% below its 50-day moving average at 23,685, with the index remaining below all key moving averages and failing to move above the previous day's high. Immediate support is placed in the 23,100–23,150 zone, while resistance is observed in the 23,650–23,700 range. The Relative Strength Index (RSI) stands at 41.41, indicating weak momentum though signs of recovery emerged during the latter half of the session. The volatility index, India VIX, rose by 6.01% to close at 16.27, indicating elevated market volatility and cautious sentiment among participants.
According to ET Now, the Bank Nifty closed at 54,185.95, gaining 471.30 points or 0.88% over the previous close of 53,714.65, ending the day with a sharp recovery from intraday lows. The index opened with a gap-down of 173.55 points at 53,541.10, indicating weakness in the banking space at the start of the session. Selling pressure persisted during the first half, dragging the index to an intraday low of 53,027.15. However, robust buying interest emerged thereafter, helping the index stage a sharp recovery through the second half, pushing the index to an intraday high of 54,299.35. The immediate support is placed in the 53,200–53,300 zone, while resistance is observed in the 55,050–55,150 range. The RSI stands at 47.57, indicating improving momentum though it remains below the stronger bullish threshold.
Banking shares outperformed the broader market on Wednesday, with Federal Bank standing out on technical charts. The stock broke out of a three-month cup-and-handle pattern and closed at a record high, also moving out of a 23-day consolidation phase, signalling renewed buying interest. Its Relative Strength line climbed to a fresh high, indicating outperformance against the broader market. Federal Bank continues to trade above all key moving averages, with Bollinger Bands expanding after narrowing during consolidation, suggesting an increase in volatility in the direction of the breakout. The MACD has delivered a fresh bullish crossover, while the 14-day RSI has moved above 60 after finding support near its nine-period average. Other momentum indicators have also strengthened, with the KST nearing a fresh bullish signal and the Stochastic RSI remaining in bullish territory. The stock has entered new high territory after breaking out of the pattern, with a move above ₹303 potentially strengthening momentum and creating room for a rise towards ₹328 and then ₹335.
