Anil Singhvi Market Strategy (June 9): How to trade Nifty 50, Nifty Bank today? Key levels to track & more

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index at 24,900-25,000 levels and a strong buy zone at 24,750-24,850 levels on Monday, June 9. For the Nifty Bank, the market wizard expects support at 56,000-56,150 levels and a strong buy zone at 55,750-55,925 levels. 

How market guru Anil Singhvi sums up trade setup: 

• Global: Positive

• FII: Positive

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

• FII long positions at 21 per cent vs 16 per cent before Friday’s session

• Nifty put-call ratio (PCR) at 1.05 vs 0.98

• Nifty Bank PCR at 1.02 vs 0.83

• Volatility index India VIX down 3 per cent at 14.63

The market wizard expects a higher zone at 25,075-25,125 levels and a profit-booking zone at 25,200-25,300 levels for the headline index.

For the banking index, he expects a “blue-sky zone” above 56,700 with the next small target near the 57,000 mark. 

What are the next targets for Nifty50 and Nifty Bank?

• On Friday, Nifty Bank gave a major breakout above 56,161
• Its support range has shifted to 55,750-56,000 levels
• Above 56,700, Nifty Bank is set to enter the blue sky zone, with the next immediate target near 57,000
• Nifty Bank is gradually gearing up to move towards the 58,000 mark 

Are FIIs buying out of strength or compulsion?

• On Friday, FII inflows stood at Rs 1,010 crore 
• Combined cash, stock and index futures buying totaled Rs 7,300 crore on that day
• FIIs’ long positions in index futures increased to 21 per cent from 16 per cent 
• Small buying in cash and short-covering in futures suggest that the buying was out of compulsion
• The next 2–3 days are crucial to watch out for if FIIs continue buying in the cash segment
• There is a strong possibility that FIIs’ forced buying could now turn into strong buying
• DIIs made strong purchases to the tune of Rs 9,342 crore for the 14th day in a row
• Friday’s data includes three powerful block deals totaling Rs 6,805 crore

What should traders do? Is it too late to buy now?

• Bank Nifty gave a major breakout intraday at 56,161 and closed above 55,900
• As long as it doesn’t close below 55,900, follow a Buy on Dips strategy
• With 19 lakh shares open at the 56,000 call, Bank Nifty likely won’t fall far below 56,000
• On a breakout above 56,700, hold positions and trail stoploss accordingly

What should investors do?

• Nifty has jumped nearly 3,300 points from the April 7 low of 21,743
• Still room for more upside
• India looks very strong, both macro and micro-wise
• Only two real risks:
  • Oversupply from promoters, PE funds, and IPOs
  • A major crisis emerging from the US
• Strong opportunity to invest in sectors benefiting from rate cuts: NBFCs, PSU banks, auto, auto ancillary, real estate stocks

What’s the good news from global markets?

• Major rally seen in the US after employment data
• US-China trade deal talks to begin today

ANIL SINGHVI MARKET STRATEGY | How to trade Nifty Bank and Nifty50?

For existing long positions: 

• Nifty intraday stop loss at 24,900 and closing stop loss at 24,750

• Nifty Bank intraday stop loss at 56,000 and closing stop loss at 55,750

For existing short positions:

• Nifty intraday and closing stop loss at 25,125

• Nifty Bank intraday and closing stop loss at 56,700

For new positions in Nifty50:

• Buy Nifty with a stop loss at 24,900 for targets of 25,075, 25,125, 25,200, 25,235, 25,300 and 25,335

• Aggressive traders can sell Nifty in the 25,200-25,300 range with a strict stop loss at 25,400 for targets of 25,125, 25,075, 25,025, 24,950 and 24,900

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 56,000-56,150 with a stop loss at 55,800 for targets of 56,475, 56,575 and 56,675

• Aggressive traders can buy Nifty Bank with a strict stop loss at 56,400 for a target of 56,700; above 56,750, the index is set to be in a blue-sky zone

• Investors may hold on to their longs positions with a trailing stop loss for the next minor target near 57,000

• Aggressive traders can sell Nifty Bank only of it breaks 56,000 with a strict stop loss at 56,200 or sell near 57,000 with a strict stop loss at 57,100 for targets of 56,700, 56,600, 56,525, 56,500 and 56,200

Stocks in F&O ban

• New in ban: Hindustan Copper

• Already in ban: Chambal Fertilisers, AB Fashion, Manappuram Finance

• Out of ban: None

Stock of the Day: RIL

Buy MGL futures for targets of Rs 1,345, Rs 1,360 and Rs 1,375 with a stop loss at Rs 1,320 

• The company has given a strong outlook in the meeting with analysts 
• CITI has maintained a ‘buy’ rating with a target price of Rs 1,700