Anil Singhvi Nifty50 Strategy: Profit-booking zone at 24,125-24,300—Key levels to track

Zee Business Managing Editor Anil Singhvi expects strong support for the Nifty50 index to emerge at 23,550-23,650 levels on Monday, June 15. The market wizard sees strong support for the Nifty Bank emerging at 55,600-55,900 levels.

How the market wizard sums up the trade setup

• Global: Positive
• FII: Positive
• DII: Positive
• F&O: Negative
• Sentiment: Positive
• Trend: Neutral

• FII long positions at 12.35 per cent vs 10.28 per cent before Friday's trade

• Nifty put-call ratio (PCR) at 1.41 vs 0.99

• Nifty Bank PCR at 1.05 vs 0.93

For the 50-blue-chip index, the market wizard expects a higher zone at 23,725-23,825 and 23,900-24,075 levels and a profit-booking area at 24,125-24,300 levels.

For the banking index, he expects a higher zone at 57,350-57,450 levels and a profit-booking zone at 58,375-58,575 levels.

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

For existing long positions:

• Nifty intraday and closing stop loss at 23,600
• Nifty Bank intraday and closing stop loss at 56,800

For existing short positions:

• Nifty intraday and closing stop loss at 23,825
• Nifty Bank intraday and closing stop loss at 57,800

For new positions in Nifty50:

• Buy Nifty with a stop loss at 23,600 for targets of 23,825, 23,900, 24,000, 24,075, 24,125, 24,175 and 24,300

• Aggressive traders can sell Nifty in the 24,000-24,300 range with a strict stop loss at 24,400 for targets of 23,950, 23,915, 23,865, 23,815, 23,775 and 23,725

  For new positions in Nifty Bank:

• Buy Nifty Bank with a stop loss at 56,700 for targets of 57,075, 57,350, 57,450, 57,550, 57,700, 57,775 and 58,375

• Aggressive traders can sell Nifty Bank near 57,700 with a strict stop loss at 57,850 for targets of 57,550, 57,450, 57,375, 57,100, 56,900 and 56,825

Futures & options (F&O) ban

• Already in ban: Kaynes Tech
• New in ban: None
• Out of ban: None

Buzzing Stocks: RIL, HDFC Bank and others

Is Rs 1,300 a make-or-break level for Reliance Industries?

• RIL has strengthened for a second straight session, forming a higher high-higher low pattern
• On Friday, it snapped out of a six-day streak of lower lows to close 2.4 per cent higher at Rs 1,293 after touching Rs 1,297 in intraday trade
• The stock faced strong resistance around the Rs 1,300 mark on June 10
• There was heavy activity in its Rs 1,300 call option
• RIL is set to move out of the danger zone only if it closes above Rs 1,300

HDFC Bank

• The stock rose 3.7 per cent to close at Rs 772, forming a higher high-higher low pattern for a third straight day
• On Friday, it closed above its 50-day moving average (DMA) after 10 days
• The stock made its highest contribution to the rally, adding 91 points to the Nifty50 and 358 points to the Nifty Bank

ICICI Bank

• ICICI Bank rose 1.8 per cent on a fourth straight day of gains, closing at Rs 1,340
• It formed a higher high-higher low pattern for the fourth day
• For an eighth consecutive day, its closing price was above its opening price; the stock touched a 33-day intraday high of Rs 1,344
• It closed above its 50-DMA of Rs 1,279 for a third consecutive session
• Its 200-DMA, at Rs 1,349, remains a major resistance level
• Friday's intraday high of Rs 1,344 came close to this level
• The last time ICICI Bank closed above its 200-DMA was on April 21
• From there, the stock fell 13 per cent over 30 days to its June 3 low of Rs 1,213
• A strong contrarian call was made on June 3 that ICICI Bank would not close below Rs 1,220
• Since the June 3 low of Rs 1,213, the stock has recovered 10.8% in eight days
• A fresh and stronger uptrend could emerge if the stock closes above Rs 1,350
• Both Nifty Bank and ICICI Bank have now reached risky resistance zones

Has the IT sector bottomed out for now?

• The IT index has weakened for an eighth straight session
• However, it has exited a four-day lower high-lower low pattern
• The last time the IT index fell for eight straight sessions was between September 19 and September 30
• It then rallied 8 per cent within a month until October 23
• The market will now watch whether the current decline also finds support