Anil Singhvi Market Strategy (June 13): 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 Nifty50 index at 24,625-24,750 levels and a stronger support zone at 24,450-24,550 levels on Friday, June 13. For the Nifty Bank, the market wizard expects support at 55,550-55,750 levels and a strong buy zone at 55,250-55,450 levels. 

How market guru Anil Singhvi sums up trade setup: 

• Global: Negative

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Cautious

• Trend: Positive

• FII long positions at 20 per cent vs 22 per cent before Thursday’s session

• Nifty put-call ratio (PCR) at 0.92 vs 0.97

• Nifty Bank PCR at 0.83 vs 0.96

• Volatility index India VIX up 2.5 per cent at 14.01

   

The market wizard expects a higher zone at 24,825-24,900 levels and a strong sell zone at 25,000-25,100 levels for the headline index.

For the banking index, he expects a higher zone at 55,950-56,150 levels and a strong sell zone at 56,400-56,600 levels.

Has a US-China trade deal been materialised?

• US President Donald Trump has announced a deal “from his side”
• Final approval from China President Xi Jinping is still pending
• Under the deal, the US will get rare earth mineral supplies from China
• The US will allow Chinese students to study there 
• Trump claims the US gains 55 per cent from the deal, while China gets only 10 per cent

How much trust should investors place in the deal announcement?

• Till now, Trump’s formula: more talk, less action
• Trump is always overly eager to take credit for a deal
• Until China gives a green signal, one should not consider the deal final

Is the stress due to FII selling or something else?

Yesterday saw heavy selling of Rs 3,831 Cr in cash and a total of Rs 12,150 Cr including index and stock futures 

Domestic funds have continued buying for the 18th straight day, purchasing Rs 9,394 Cr 

This includes a Rs 7,700 Cr block deal in Asian Paints 

FIIs were gradually moving towards a buying mood 

But yesterday, they sold big out of fear of geopolitical tensions 

After a good rally in the past two months and a strong rupee, booking profits makes sense 

It’s possible global cues may trigger some more selling 

FIIs are not bearish on India 

So, as soon as conditions improve, buying will return 

Which levels, if breached, could worsen the fall?

Nifty rallied from the 24,464 low to touch 25,222 

A close below 24,450 will turn the bullish trend neutral 

A close below 23,900 would shift us into a bearish trend 

Bank Nifty rose from 54,576 to reach 57,049 

A close below 55,350 would make the trend neutral 

A close below 54,575 would shift us into a bearish trend 

Is there anything positive for today?

Inflation in India is at a 6-year low–very positive 

Dollar index at a 4-year low, below 98 

A massive Rs 7,700 Cr block deal in Asian Paints was smoothly absorbed by just one DII–SBI Mutual Fund 

Which stocks and sectors to buy or sell?

Pressure will remain on oil and paint companies 

Stocks linked to aviation and global trade may stay weak 

FMCG stocks may see mild buying due to falling inflation 

Defense stocks could attract buying amid global tensions 

What should traders and investors do now?

Traders 

• Manage risk with strict stop-losses on long positions 
• Minimize intraday and overnight exposure 
• Most day traders had their long stop-losses triggered yesterday 

Investors

• It’s impossible to predict the start or end of geopolitical tensions 
• No one knows when it’ll begin or how it’ll end 
• But what’s certain is recovery and rally follow once tensions subside 
• Until then, you’ll need to manage your portfolio through the fall 
• Such events offer golden chances for fresh investments during dips 
• If investing for the short term, reduce positions slightly 
• If your view is a year or longer, there’s no reason to worry

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

For existing long positions: 

For existing short positions:

For new positions in Nifty50:

• Sell Nifty:
  SL 25000 Tgt 24750, 24700, 24675, 24625, 24550, 24500, 24450

  Aggressive Traders Buy Nifty in 24500-24625 range:

  Strict SL 24400 Tgt 24750, 24825, 24850, 24900, 24950, 25000

For new positions in Nifty Bank:

• Sell Bank Nifty: SL 56200 Tgt 55800, 55750, 55675, 55600, 55550, 55450, 55350, 55250

• Aggressive Traders Buy Bank Nifty in 55450-55675 range:
  Strict SL 55250 Tgt 55750, 55800, 55875, 55950, 56000, 56075

Stocks in F&O ban

• New in ban: Birlasoft Tech

• Already in ban: CDSL, IEX, IREDA, RBL Bank, Titagarh, Hindustan Copper, Chambal Fertilisers, AB Fashion

• Out of ban: None