Anil Singhvi strategy June 6: Important levels to track in Nifty, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the Nifty index coming in at 18,535-18,575 levels and a strong buy zone in the 18,450-18,500 band on Tuesday, June 6.

For the Nifty Bank, he sees support at 43,825-43,950 levels and a strong buy zone at 43,525-43,700 levels.

Here's how Anil Singhvi sums up the market setup:

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• Global: Negative

• FII: Neutral

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

For the 50-scrip headline index, he expects a higher zone at 18,625-18,660 levels and a profit-booking zone at 18,690-18,750 levels.​ For the banking index, he sees a higher zone at 44,200-44,325 levels and a strong sell zone at 44,425-44,500 levels.

• FII index longs at 50 per cent vs 48 per cent the previous day

• Nifty put-call ratio (PCR) at 1.00 vs 0.95

• Nifty Bank PCR at 0.87 vs 0.80

• India VIX unchanged at 11.14

ANIL SINGHVI MARKET STRATEGY

The market wizard suggests buying at key support levels and profit-taking at higher levels. Investors need not worry as long as the Nifty and the Nifty Bank stay above 18,275 and 43,650 levels on a closing basis respectively, he says.

For existing long positions:

• Nifty intraday and closing stop loss at 18,450

• Nifty Bank intraday stop loss at 43,800 and closing stop loss at 43,650

For existing short positions:

• Nifty intraday and closing stop loss at 18,675

• Nifty Bank intraday and closing stop loss at 44,550

For new positions in Nifty:

• Buy Nifty in the 18,475-18,535 range with a stop loss at 18,400 for targets of 18,575, 18,600, 18,635, 18,660 and 18,690

• Aggressive traders can sell Nifty in the 18,640-18,725 range with a strict stop loss at 18,800 for targets of 18,600, 18,575, 18,535, 18,500 and 18,475

For new positions in Nifty Bank:

• Buy Nifty Bank in the 43,700-43,825 range with a stop loss at 43,650 for targets of 43,900, 43,950, 44,000, 44,075, 44,125, 44,200 and 44,250

• Aggressive traders can buy Nifty Bank with a strict stop loss at 43,800 for targets of 44,200, 44,250, 44,300, 44,425 and 44,475

• Sell Nifty Bank in the 44,300-44,500 range with a stop loss at 44,550 for targets of 44,200, 44,125, 44,075, 44,025, 43,950, 43,900 and 43,825

F&O ban update:

• New in ban: Indiabulls Housing Finance, India Cements, Manappuram Finance
• Already in ban: None
• Out of ban: None

Stock of the day:

Buy MTAR Tech shares with a stop loss at Rs 1,880 for targets of Rs 1,920, Rs 1,935 and Rs 1,950

• Plutus Wealth Management LLP bought more than four per cent equity stake at Rs 1,880 per share

IKIO Lighting IPO preview:

Market guru Anil Singhvi recommends applying for the IPO for listing gains as well as for the long term.

Positives:

• Experienced and trusted promoters
• Strong financials
• High margin business
• A strong anchor investor book
• Attractive valuations

Negatives:

• High dependency on a single client
• High import dependant for raw material
• Increase in inventory pileup
• Inconsistent cash flow

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