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Below the Quote on Pre-market comment for Thursday June 4 by Aakash Shah, Technical Analyst, Technical Research Analyst, at Choice Broking

Indian equity markets are expected to open on a weak note, with Gift Nifty trading at 23,318, down by 176 points. Asia-Pacific equities are also expected to start lower following overnight weakness on Wall Street, as rising crude oil prices and renewed Iran-US geopolitical tensions weighed on investor sentiment.

In the previous session, The Nifty 50 recovered sharply from intraday lows on June 3 and closed off the day's weakest levels. However, the broader market structure remains weak as bears continue to dominate, with the index trading below all key moving averages and momentum indicators remaining in negative territory.

Technically, the Nifty formed a small-bodied bearish candle with a long lower shadow on the daily chart, indicating buying interest emerging at lower levels amid heightened volatility. Despite the recovery, the index failed to close above the previous session's high and continued to maintain its lower high-lower low formation, reflecting persistent weakness in the prevailing trend.

The index also moved close to the 61.8 percent Fibonacci retracement level of the April rally before witnessing a rebound. However, all key short- and medium-term moving averages continue to slope downward, indicating that the broader trend remains under pressure.

From a technical perspective, the immediate support level is placed at 23,150, which marks the recent swing low. A decisive break below this level may intensify selling pressure and drag the index towards 23,000–22,700 in the coming sessions. On the upside, the immediate hurdle is placed in the 23,600–23,700 zone, which coincides with the 10-day and 20-day EMAs. A sustained move above this zone may open the door for a recovery towards 24,000.

Derivatives data indicates a neutral-to-cautious undertone. The Nifty Put-Call Ratio (PCR) eased marginally to 1.02 on June 3 from 1.03 in the previous session. While the PCR remains above the 1 mark, indicating supportive put writing activity, the lack of significant improvement reflects cautious trader positioning.

India VIX, the market fear gauge, rose 6.01 percent to 16.28 and remained within the broader 14.50–17.00 range seen over the past several sessions. The elevated volatility levels continue to indicate discomfort among market participants. A sustained decline below this range would be required for bullish confidence to improve meaningfully.

Option chain positioning indicates immediate support near the 23,150–23,000 zone, while resistance is visible around the 23,600–23,700 levels where call writers remain active. This reinforces the prevailing range-bound but bearish market structure.

The Nifty Bank outperformed the benchmark index and witnessed follow-through buying interest, gaining 0.9 percent on June 3. The banking index closed above the previous day's high and formed a bullish candle on the daily chart, indicating improving sentiment within the sector.

Technically, Bank Nifty managed to close above the 50 percent Fibonacci retracement level of the April rally and showed relative strength compared to the broader market. However, the index failed to close above its crucial 20-day EMA, which remains an important hurdle for any sustained recovery.

Momentum indicators have shown improvement. The RSI rose to 47.57 and generated a positive crossover, while the MACD remained above the signal line with strengthening positive histogram bars. These developments indicate improving momentum in the banking space, although confirmation of a stronger uptrend will require a decisive breakout above the 20-day EMA.

Immediate support for Bank Nifty is placed around 53,000–52,700, while resistance is seen near 54,600–55,000. A sustained move above resistance levels could improve the near-term outlook for the banking index

Overall, the technical setup remains weak with benchmark indices trading below key moving averages, momentum indicators turning negative, and volatility rising. Unless Nifty manages to hold above 23,150 and reclaim the 23,700 zone, bears are likely to maintain control in the near term, keeping market sentiment cautious and volatile.

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