Anil Singhvi Strategy: Nifty Bank profit-booking area at 54,750-54,975, says market guru—Key levels to track and more

Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index to emerge at 23,150-23,275 levels and a stronger support area at 23,000-23,125 levels on Thursday, June 4. Similarly, the market wizard sees support for the Nifty Bank coming in at 53,475-53,650 levels and a strong buy area at 53,025-53,200 levels.

How the market wizard sums up the trade setup

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

• FII long positions at 8.34 per cent vs 8.79 per cent before Wednesday's trade

• Nifty put-call ratio (PCR) at 1.02 vs 1.03

• Nifty Bank PCR at 0.87 vs 0.82

For the 50-blue-chip index, the market wizard expects a higher zone at 23,450-23,550 levels and profit-booking territory at 23,600-23,750 levels.

For the banking index, he expects a higher zone at 54,300-54,600 levels and a profit-booking area at 54,750-54,975 levels.

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

For existing long positions:

• Nifty intraday and closing stop loss at 23,100
• Nifty Bank intraday stop loss at 53,600 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 54,600

For new positions in Nifty50:

• The best range to buy Nifty is 23,150-23,265 with a stop loss at 23,000 for targets of 23,350, 23,400, 23,450, 23,475, 23,550, 23,600 and 23,675
• Aggressive traders can sell Nifty in the 23,450-23,600 range with a strict stop loss at 23,750 for targets of 23,415, 23,375, 23,325, 23,275, 23,225 and 23,150

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 52,850-53,125 with a stop loss at 52,600 for targets of 53,275, 53,475, 53,650, 53,725, 53,925 and 54,100
• Aggressive traders can buy Nifty Bank in the 53,475-53,650 range with a strict stop loss at 53,400 for targets of 53,925, 54,100, 54,175, 54,300, 54,400, 54,575 and 54,750
• Aggressive traders can sell Nifty Bank in the 54,400-54,600 range with a strict stop loss at 54,700 for targets of 54,200, 54,100, 53,950, 53,650, 53,500 and 53,200

Futures & options (F&O) ban

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

What index heavyweights signal

Market movers like Reliance Industries Ltd (RIL) and ICICI Bank have weakened for 5-6 days recently.

RIL

• RIL has declined for a sixth straight session to close at Rs 1,313

• Over the past one year, the index heavyweight has slid below the Rs 1,315 mark only five times (between March 4 and May 20)

• Each slide led to a recovery of 4.5-12 per cent in the next 2-6 sessions

• This month, it has hit lows of Rs 1,300-1,301, a slide below which may lead to further weakness

• In recoveries, major resitance is expected at its 50-day moving average (DMA) of Rs 1,370

ICICI Bank

• The stock has staged a recovery from its key support levels, halting a five-day losing streak (up 1.3 per cent at Rs 1,242)
• In May, it took major support at Rs 1,220, hitting lows of Rs 1,227 and Rs 1,223 on May 13 and May 20, respectively
• Both dips were followed by 2.5-6.5 per cent recoveries over the next 2-5 days
• In Wednesday's trade, the blue-chip hit a one-month intraday low of Rs 1,213 and then recovered 2.4 per cent
• That confirms strong closing support at Rs 1,220

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