Stock Market Outlook Today, June 2: Sensex, Nifty Likely to Remain Under Pressure Amid FII Selling

Indian equity markets are likely to remain under pressure on Tuesday, June 2, after benchmark indices ended lower for the fourth consecutive session amid persistent foreign investor selling and growing geopolitical concerns.

Stock Market Outlook Today, June 2, 2026: Sensex, Nifty Prediction for Tuesday

The BSE Sensex declined 508.40 points, or 0.68%, to close at 74,267.34 on Monday, while the NSE Nifty 50 shed 165.15 points, or 0.70%, to settle at 23,382.60, slipping below the crucial 23,400 mark. The continued weakness reflects cautious investor sentiment as markets grapple with external uncertainties and await key domestic triggers.

Market participants are now closely watching the Reserve Bank of India's Monetary Policy Committee (MPC) meeting scheduled between June 3 and June 5, which is expected to provide fresh direction to equities. In addition, foreign institutional investor (FII) activity, global market developments and geopolitical tensions are likely to remain important factors influencing sentiment in the near term.

According to Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, markets may continue to witness a cautious trend in the short term.

"Indian equities are expected to remain range-bound with a marginal negative bias in the near term amid persistent Foreign Institutional Investor selling and ongoing uncertainty around global macro developments. With the Q4FY26 earnings season largely concluded and broader markets reporting stronger earnings growth, focus is likely to remain on stock-specific opportunities in the midcap space. Investors will also track the RBI's June 3-5 policy meeting, while textile stocks may remain in focus following the government's cotton import duty waiver."

Nifty Prediction Today for June 2; What Investors Can Expect?

Technical analysts at Bajaj Broking Research believe the Nifty remains in a short-term downtrend after closing below an important support level.

The benchmark index has now declined for four straight sessions and formed another bearish candlestick pattern on the daily chart, characterised by a lower high and a lower low. The Nifty also slipped below last week's low of 23,484, indicating that selling pressure continues to dominate market action.

"Going ahead bias continues to remain down and index likely to test last month low of 23262 in the coming sessions. Only a formation of higher high and higher low in the daily chart will signal a pause in the downtrend. On the higher side 23,700-23,800 is expected to act as resistance being confluence of Monday's high and 20 days EMA," stated Bajaj Broking Research.

Based on the technical setup, traders will closely watch the 23,262 zone as an immediate support area, while the 23,700-23,800 range could act as a key hurdle for any recovery attempt.

Bank Nifty Outlook for Tuesday

The banking index also ended on a weak note, mirroring the broader market trend. Bank Nifty formed a bearish candle on the daily chart and closed below last week's low of 54,116, reinforcing the prevailing negative bias.

However, analysts expect the index to trade within a broad consolidation range unless a decisive breakout or breakdown emerges.

"Index likely to consolidate in the range of 52,500-55,600 only a breakout or breakdown will signal directional moment in the index."

Bajaj Broking Research further highlighted key levels for traders to monitor.

"Index has key support placed at 52,700-52,500 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (49955-57456). On the higher side key resistance at 55,600-56,000 levels being the confluence of last week high and 50 days EMA."

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