Anil Singhvis Market Strategy June 1: Light rollover of 63% in Nifty; Auto, Metals, Private Banks and Aviation to be negative

Tracking the positive Futures and Options (F&O), neutral foreign institutional investors (FII), Domestic Institutional Investors (DIIs) and negative global cues, the market trend for June 1, 2018, is going to be positive. But the traders are advised to be cautious while investing in the market today. 

On May 31 the NIFTY 50 and BankNifty closed 121.80 points and 628.40 points higher respectively.  

Zee Business's Managing Editor Anil Singhvi's Market Strategy for June 1:
Light rollover of 63 per cent in Nifty and less open interest in June series. 

The big upmove of May 31 happened due to huge short covering but the market will have to struggle to sustain the high higher levels today, on June 1. 

GDP numbers are good but be alert at macro levels due to the concerns of the trade war. 

10,700 and 27,000 are going to be the deciding levels for Nifty and BankNifty. 

Trade small range at Nifty is going to be between 10,650-10,775 

10,600 to 10,650 is going to be a strong support zone in Nifty but any break down at 10,700 will be the first hint towards the weakness of the market. 

In case of BankNifty, 26,000-27,000 is going to be a small trade range and if it crosses these two marks then the traders can see an additional move of 150-200 points on the chart. 

Anil Singhvi suggestion for traders is to reduce their buying positions on Nifty and BankNifty if it closes below 10,600 and 26,600 respectively. 

Watch this Zee Business video here:

Sell and Buy strategy on Nifty 
Sell Nifty with a stop loss at 10,775 and target of 10700, 10650 & 10625. 

Buy Nifty below 10,625 with a stop loss of 10,575 and target of 10650, 10675 and 10700. 

Sell and Buy strategy on BankNifty 

Sell BankNifty with a stop loss at 27,150 and Target of 26700, 26600 & 26500. 

Buy BankNifty near 26500 with a stop loss of 26,300 and target 26,700. 

The put-call ratio (PCR) for June 1 stands at 1.58 and volatility index (VIX) is 13.22. 

Auto, Metals, Private Banks and Aviation sectors are going to be negative and traders are advised not to get involved in the positional trade in these sectors. 

Future and Option (F&O) traders 
Out of Ban at the start of June Series: Reliance Communications, GMR Infrastructure, IDFC Bank, DHFL, IDBI bank, Balrampur Chini, Just Dial and JP Associates are out of the ban.