Anil Singhvi Market Strategy (June 10): 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 25,000-25,075 levels and a strong buy zone at 24,850-24,950 levels on Tuesday, June 10. For the Nifty Bank, the market wizard expects support at 56,525-56,700 levels and a strong buy zone at 56,000-56,150 levels. 

How market guru Anil Singhvi sums up trade setup: 

• Global: Neutral

• FII: Positive

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

• FII long positions at 20 per cent vs 21 per cent before Monday’s session

• Nifty put-call ratio (PCR) at 1.01 vs 1.05

• Nifty Bank PCR at 1.04 vs 1.02

• Volatility index India VIX up 0.5 per cent at 14.69

The market wizard expects a higher zone at 25,150-25,235 levels and a profit-booking zone at 25,300-25,400 levels for the headline index.

For the banking index, he expects a higher zone at 56,950-57,050 levels and a “blue-sky zone” above the 57,100 mark with the next big target near 58,000.

How much support do FII & DII inflows offer?

• FIIs increased their cash market buying, purchasing shares worth Rs 1,993 crore
• Domestic funds continued buying for the 15th straight day, bought shares worth Rs 3,504 crore yesterday
• Buying from both will provide support at lower levels
• FIIs are gradually returning to consistent buying and a bullish mood

Will Nifty Bank scale a lifetime high for the third session in a row?

• Nifty Bank is staging tremendous bullish momentum, with the base now risen to the 56,000-56,150 range
• There is still open interest of 19 lakh in the 56,000 call option, suggesting strong support
• Intraday weakness will only be visible below the 56,500 level
• Some resistance at around 57,000
• A move above 57,100 will unleash a strong upmove

Is a Nifty50 breakout confirmed?

• Technically, Nifty gave intraday and closing breakouts on Monday
• The rally that started from the April 7 bottom made both intraday and closing highs on June 9
• On Tuesday, a move above the previous day’s high and a positive close will strongly confirm a breakout
• In that case, the immediate target will be 25,200–25,300, while the larger target will be 25,625–25,800
• Major support for Nifty50 stands in the 24,750-24,850 range

Global cues

• US markets staged a strong recovery from lower levels
• US-China trade deal talks will continue on Tuesday
• Benchmark crude oil rate at a two-month high, trading above $67/barrel
• Dollar index stable near 99
• Silver near a 14-year high, around $37/ounce

Read more on global markets

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

For existing long positions: 

• Nifty intraday and closing stop loss at 24,950

• Nifty Bank intraday and closing stop loss at 56,475

For existing short positions:

• Nifty intraday and closing stop loss at 25,200

• Nifty Bank intraday and closing stop loss at 57,100

For new positions in Nifty50:

• The best range to buy Nifty is 24,900-25,025 with a stop loss at 24,800 for targets of 25,075, 25,100, 25,150, 25,200, 25,235 and 25,300

• Aggressive traders can sell Nifty in the 25,200-25,300 range with a strict stop loss at 25,400 for targets of 25,160, 25,100, 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, 56,675, 56,775, 56,850 and 56,950

• Aggressive traders can buy Nifty Bank in the 56,500-56,700 range with a strict stop loss at 56,400 for targets of 56,775, 56,850, 56,950 and 57,050; above the 57,100 mark, the banking index is set to be in a blue-sky zone

• One may hold on to their long positions with a trailing stop loss 

• Aggressive traders can sell Nifty Bank near 57,000 with a strict stop loss at 57,100 for targets of 56,850, 56,800, 56,700, 56,575, 56,500 and 56,150

• Aggressive traders can sell Nifty Bank if it breaks and stays below 56,500; a strict stop loss at 56,700 is advised for targets of 56,175, 56,025, 55,900 and 55,800

Stocks in F&O ban

• New in ban: Titagarh

• Out of ban: Manappuram Finance

• Already in ban: Hindustan Copper, Chambal Fertilisers, AB Fashion

Stocks of the Day: ITD Cementation, Jana Small Finance Bank, Grasim, Shankara Building, Sagility

Buy ITD Cementation shares for targets of Rs 767, Rs 778 and Rs 790 with a stop loss at Rs 750 

• The company has received a contract worth Rs 893 crore

Buy Jana SFB shares for targets of Rs 525, Rs 530 and Rs 540 with a stop loss at Rs 510 

• The bank has applied for a universal bank licence

Buy Grasim futures for targets of Rs 2,640, Rs 2,665 and Rs 2,690 with a stop loss at Rs 2,580 

• Morgan Stanley has upgraded the stock to ‘overweight’ from ‘equal-weight’ and raised its target to Rs 3,500 from Rs 2,975 per share 

Buy Sagility shares for targets of Rs 41.5, Rs 42.5 and Rs 43 with a stop loss at Rs 39.5 

• It is a fundamentally strong company
• The stock has fallen from Rs 47-odd levels after OFS
• It has resumed uptrend and is looking strong

Buy Shankara Building shares for targets of Rs 1,015, Rs 1,025 and Rs 1,040 with a stop loss at Rs 980 

• Promoters have sold a 9.07 per cent stake through the block deal route on Monday
• Singularity Equity Fund and other big buyers have bought the stake