Anil Singhvi Strategy: Nifty Bank strong buy area at 52,600-52,850, says market guru—Key levels to track and more

Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index to emerge at 23,275-23,375 levels and a strong buy area in the 23,125-23,225 range on Wednesday, June 3.

The market wizard sees support for the Nifty Bank at 53,150-53,450 levels and a strong buy zone at 52,600-52,850 levels.

How the market wizard sums up the trade setup

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

• FII long positions at 8.79 per cent vs 9.68 per cent before Tuesday's trade

• Nifty put-call ratio (PCR) at 1.03 vs 0.69

• Nifty Bank PCR at 0.82 vs 0.81

For the headline index, the market wizard expects a higher zone at 23,550-23,675 levels and a strong sell area at 23,700-23,850 levels.

For the banking index, he expects a higher zone at 53,925-54,175 levels and a strong sell zone at 54,325-54,600 levels.

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

For existing long positions:

• Nifty intraday and closing stop loss at 23,350
• Nifty Bank intraday stop loss at 53,100 and closing stop loss at 53,300

For existing short positions:

• Nifty intraday and closing stop loss at 23,600
• Nifty Bank intraday and closing stop loss at 54,100

For new positions in Nifty50:

• Aggressive traders can sell Nifty in the 23,550-23,700 range with a strict stop loss at 23,850 for targets of 23,485, 23,415, 23,375, 23,325, 23,275, 23,225 and 23,150
• The best range to buy Nifty is 23,150-23,275 with a stop loss at 23,000 for targets of 23,325, 23,375, 23,415, 23,475, 23,550, 23,615 and 23,675

For new positions in Nifty Bank:

• Aggressive traders can sell Nifty Bank in the 54,100-54,400 range with a strict stop loss at 54,600 for targets of 53,950, 53,725, 53,650, 53,500, 53,275, 53,125 and 52,850
• The best range to buy Nifty Bank is 52,600-52,850 with a stop loss at 52,500 for targets of 53,100, 53,200, 53,450, 53,625, 53,700 and 53,925
• Aggressive traders can buy Nifty Bank in the 53,125-53,275 range with a strict stop loss at 53,000 for targets of 53,475, 53,625, 53,700, 53,925, 54,100, 54,175 and 54,400

Futures & options (F&O) ban

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

What index heavyweights signal

Two market movers -- Reliance Industries Ltd (RIL) and ICICI Bank -- have weakened for the fifth trading session in a row.

RIL

• In intraday trade, RIL shares hit a 37-day low of Rs 1,300 before closing at Rs 1,314 on Tuesday

• Before Tuesday, the stock had traded below the Rs 1,315 mark just five times in the last one year

• All five occassions occurred between March 4 and May 20

• Each of those dips was followed by a recovery of between 4.5 per cent and 12 per cent over the next 2-6 sessions

• A slide below the crucial Rs 1,300 mark will lead to more weakness in the index heavyweight

• In recoveries, the stock is expected to face major resistance at its 50-day moving average (DMA) near Rs 1,370

ICICI Bank

• The stock formed a lower-high-lower-low technical pattern for a fourth straight session

• In May, the stock found major support at Rs 1,220

• It touched lows of Rs 1,227 on May 13 and Rs 1,223 on May 20

• Those dips were followed by recoveries to the tune of 2.5-6.5 per cent over the next 2-5 days

Buzzing Stock: Lenskart

• Buy Lenskart for targets of Rs 528, Rs 535 and Rs 540 with a stop loss at Rs 507
• A block deal took place at Rs 508.5
• One may buy the stock on dips now

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