Anil Singhvi's Market Strategy June 7: PSU, Banks and Metals set to be positive today
Driven by positive cues from the Reserve Bank of India's Monetary Policy Committee's (MPC's) policy meet outcome, the benchmark indices on Wednesday, June 6, 2018, had a strong trading session. The Nifty ended 91.50 points (0.86 per cent) higher at 10, 648.65, while the BankNifty was up by 116.60 points (0.44 per cent) at 26,367.60.
Following the positive global, Domestic Institutional Investors (DIIs), Future and Options (F&O), neutral foreign institutional investors (FII) sentiments, the trend of the domestic market is set to be positive on Thursday, .i.e. on June 7, 2018.
Zee Business's Managing Editor Anil Singhvi's Market Strategy for June 7:
The market recovered due to short covering as rate hike was already discounted.
BankNifty will give direction on weekly expiry day, now premium is 24 points.
Recovery in Additional Surveillance Measures (ASM) and cash stocks is big relief and sentiment booster
10,700 and 26,400 are going to be the deciding levels in Nifty and BankNifty respectively.
10,650-10,800 is going to be the trading range at Nifty, while 26,250-26,650 will be the trading range in BankNifty.
Anil Singhvi suggests, traders should reduce their buying positions on Nifty and BankNifty if it closes below the mark of 10,600 and 26,250 respectively.
If Nifty goes above the mark of 10,775 then it can be treated as a positive sign of the market.
Buy and Sell Strategy for Nifty
Buy Nifty with a stop loss at 10,650 and target of 10,735-10,765-10,790.
Sell Nifty above 10,765 with a stop loss of 10,800 and target of 10,750.
Buy and Sell Strategy for BankNifty
Buy BankNifty with a stop loss at 26,250 and Target of 26,500-26,650.
Sell BankNifty near 26,650 with a stop loss of 26,750 and target of 26,500.
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The put-call ratio (PCR) for June 7 stands at 1.40 and volatility index (VIX) is 12.55.
Public sector Undertakings (PSUs), Banks and Metals are going to be positive and traders can plan a positional trade in the sector.
F&O ban list: Balrampur Chini
Already In Ban: Dewan Housing Finance Corporation Limited (DHFL)
Stock of the day: Fertilizers and Chemicals Travancore Limited (FACT)