Anil Singhvi Market Strategy (June 6): 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 24,525-24,625 levels and a strong support zone at 24,400-24,500 levels on Friday, June 6, with the RBI Governor due to announce the outcome of the MPC’s June policy review at 10 am. For the Nifty Bank, the market wizard expects support at 55,350-55,500 levels and a strong buy zone at 55,050-55,250 levels. 

How market guru Anil Singhvi sums up trade setup: 

• Global: Neutral

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

• FII long positions at 16 per cent vs 17 per cent before Thursday’s session

• Nifty put-call ratio (PCR) at 0.98 vs 0.73

• Nifty Bank PCR at 0.83 vs 0.82

• Volatility index India VIX down 4 per cent at 15.08

   

The market wizard expects a higher zone at 24,800-24,900 levels and a strong sell zone at 24,950-25,075 levels for the headline index.

For the banking index, he expects a higher zone at 55,900-56,100 levels and a “blue-sky zone” above the 56,200 mark. 

Can RBI cut repo rate by 50 basis points in June review?

• A reduction in the repo rate today will be the third consecutive downward revision in the current cycle of easing monetary policy
• The RBI Governor may spring a positive surprise with a 0.5 per cent cut
• There are four reasons why a 0.5 per cent rate cut is possible:
  • Inflation under control
  • Expectations of a good monsoon
  • Intent to boost muted credit growth
  • Opportunity to capitalise on global uncertainty

Will Nifty Bank hit a new all-time high on Friday?

• Nifty Bank is just 400 points shy of a new life high
• A 50 bps rate cut could push Nifty Bank to a fresh high
• If the banking index breaks and holds above the high this time, the rally could be stronger and more sustained
• Strong gains possible in PSU bank and NBFC stocks 
• Nifty Bank may find major support at 54,800–55,000 in case of post-policy profit-booking 

Will Nifty break out of 24,500–25,100 range post-policy?

• Nifty Bank will likely help Nifty50 break out of its current range
• There are high chances that the market breaks out of the range either on Friday or early next week

How much impact will the mild FII selling have?

• FIIs have continued to sell after Tuesday’s pause
• However, outflows are very small, at Rs 208 crore in cash
• Outflows amount to Rs 1,400 crore combined in index and stock futures
• DIIs have net bought Rs 2,382 crore—purchasing for the 13th session in a row
• Before RBI policy, FIIs appeared to be in a ‘wait and watch’ mode on Thursday 

Will the Donald Trump-Elon Musk feud sink Wall Street?

• Personal feud aside, the concerns raised by Musk are serious
• Soaring US debt and a weakening dollar are major worries
• Remember: your closest friend can turn out to be your most dangerous enemy

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

For existing long positions: 

• Nifty intraday stop loss at 24,600 and closing stop loss at 24,500

• Nifty Bank intraday and closing stop loss at 55,350

   

For existing short positions:

• Nifty intraday and closing stop loss at 24,900

• Nifty Bank intraday stop loss at 56,050 and closing stop loss at 55,925

   

For new positions in Nifty50:

• The best range to buy Nifty is 24,525-24,625 for targets of 24,675, 24,750, 24,825, 24,850, 24,900 and 24,950 with a stop loss at 24,450 

• Aggressive traders can sell Nifty in the 24,850-25,000 range with a strict stop loss at 25,150 for targets of 24,750, 24,700, 24,625, 24,550, 24,525 and 24,500

For new positions in Nifty Bank:

• Aggressive traders can buy Nifty Bank in the 55,350-55,500 range with a strict stop loss at 55,200 for targets of 55,600, 55,675, 55,750, 55,800, 55,900, 55,975 and 56,100

• Aggressive traders can sell Nifty Bank in the 55,900-56,100 range with a strict stop loss at 56,200 for targets of 55,825, 55,750, 55,675, 55,600, 55,450, 55,400 and 55,350

Stocks in F&O ban

• New in ban: Chambal Fertilisers

• Already in ban: AB Fashion, Manappuram Finance

• Out of ban: None

   

Stock of the Day: RIL

Buy Reliance futures for targets of Rs 1,460, Rs 1,475 and Rs 1,485 with a stop loss at Rs 1,428 

• After a long time, the company is highly confident about retail business
• The stock is in a strong uptrend