Rajesh Palviya of Axis Securities, in an update on June 2, 2025, suggests that the Bank Nifty holds more promise compared to the Nifty. He anticipates a potential breakout for Bank Nifty above 55,800, which could lead to new all-time highs, supported by significant accumulation activities observed in PSU banks.

Reflecting on the market's recent performance, Palviya noted that the May series concluded positively, with an approximate 2% gain. Looking ahead to the June series, he highlighted strong rollover data. Nifty registered a 79% rollover, consistent with the previous month and slightly above the three-month average. Both Nifty and Bank Nifty saw higher rollovers compared to their three-month averages, with Bank Nifty's rollover also surpassing the previous month's figures. This indicates strength in Bank Nifty due to carried-over long positions, while Nifty also saw an addition of 20 lakh shares compared to the last month.

Palviya anticipates a period of brief consolidation in the broader market, followed by a potential breakout. For the Nifty, key resistance levels are identified at 24,900 and 25,000, where significant call writing activity is present. A decisive breakout above 24,900 could trigger short covering, potentially pushing the Nifty towards 25,200 in the coming weeks. Conversely, major put writing activity suggests support levels at 24,700 and 24,600. The overall bias for Nifty remains bullish, encouraging a buy-on-dips strategy.

The outlook for Bank Nifty is particularly optimistic. Key support levels are pegged at 55,000 and 55,500. If these levels hold, Palviya foresees Bank Nifty breaking above 55,800 and charting a new all-time high trajectory. This positive outlook is reinforced by observed accumulation in PSU banking stocks, hinting at a potential rally in this space, especially ahead of any policy actions.

Several individual stocks also present strong technical setups. BSE is on an upward trend, forming higher tops and bottoms, reflecting the strength in the capital market theme. With support around 2450, BSE could potentially rally towards 2800-2900. IndiGo has shown resilience, with minor dips finding support at its 50-day moving average around 5200. The stock is moving in an up-sloping channel on weekly charts, and a break above the 5400-5450 zone could propel it to new all-time highs. Bharti Hexacom has recently broken out of a rounding bottom formation on its daily chart. With support at 1780, the stock shows potential to move towards 1880-1900. Palviya notes that buying interest remains strong in these stocks despite them trading near their all-time highs, supported by the bullish behavior of the broader market and benchmark indices holding their near-term support levels.