Anil Singhvi Strategy: Nifty50 profit-booking zone at 23,600-23,725, 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 strong buy area in the 23,000-23,125 band on Tuesday, June 2.

The market wizard sees support for the Nifty Bank at 53,200-53,450 levels and a strong buy zone at 52,600-52,850 levels.

How the market wizard sums up the trade setup

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

• FII long positions at 9.68 per cent vs 11.98 per cent before Monday's trade

• Nifty put-call ratio (PCR) at 0.69 vs 0.74

• Nifty Bank PCR at 0.81 vs 0.94

For the headline index, the market wizard expects a higher zone at 23,475-23,550 levels and a profit-booking area at 23,600-23,725 levels.

For the banking index, he expects a higher zone at 54,100-54,400 levels and a strong sell zone at 54,450-54,750 levels.

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

For existing long positions:

• Nifty intraday stop loss at 23,250 and closing stop loss at 23,125

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

For existing short positions:

• Nifty intraday and closing stop loss at 23,550

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

For new positions in Nifty50:

• Aggressive traders can sell Nifty in the 23,475-23,600 range with a strict stop loss at 23,750 for targets of 23,425, 23,375, 23,325, 23,275, 23,150 and 23,125

• Aggressive traders can buy Nifty in the 23,125-23,275 range with a strict stop loss at 23,000 for targets of 23,350, 23,375, 23,425, 23,465, 23,550 and 23,600

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 53,650, 53,500, 53,275, 53,200, 52,850 and 52,700

• The best range to buy Nifty Bank is 52,850-53,200 with a stop loss at 52,600 for targets of 53,450, 53,625, 53,775, 54,100, 54,225 and 54,400

Futures & options (F&O) ban

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

What index heavyweights signal

Three market movers -- Reliance Industries Ltd (RIL), HDFC Bank and ICICI Bank -- have declined for four trading sessions in a row, as of Monday.

RIL

• RIL has weakened for four sessions in a row, to close at Rs 1,320
• In the past year, the stock has dipped below the Rs 1,315 mark only on five occasions between March 4 and May 20
• In each of the five sessions, the stock rallied between 4.5 per cent and 12 per cent over the next 2-6 sessions
• On May 20, the stock hit a bottom of Rs 1,312 and bounced back 4.4 per cent in the next two days
• The stock must sustain above its 50-day moving average (DMA) of Rs 1,370 for further upside
• More weakness is on the cards if it slides to close below the Rs 1,310 mark

HDFC Bank

• HDFC Bank shares are at a two-month closing low of Rs 742

ICICI Bank

• ICICI Bank has hit a seven-day low of Rs 1,239

Buzzing Stocks: Birlasoft, USL

Birlasoft Tech

• Buy Birlasoft shares in the cash segment for targets of Rs 331, Rs 334 and Rs 340 with a stop loss at Rs 322
• IT stocks are looking very strong

United Spirits Ltd (USL)

• Buy United Spirits futures for targets of Rs 1,275, Rs 1,285 and Rs 1,295 with a stop loss at Rs 1,242
• Liquor stocks are looking strong