Anil Singhvi’s Strategy June 4: Day Support Zone on Nifty is 9,825-9,925; Buy Federal Bank Futures with Stop Loss 45

Anil Singhvi’s Strategy June 4: Amid positive global market, foreign institutional investors (FIIs), sentiment, neutral domestic institutional investors (DIIs) and futures & options (F&O) cues, the short-term trend of the Indian stock markets will be positive on Thursday, June 4, 2020.

Climbing for the sixth session in a row, domestic equity benchmarks on Wednesday, June 3, 2020, gained around 0.8 per cent amid hope of recovery in the economy and positive global cues. The sentiment was also boosted by Prime Minister Narendra Modi's comment on Tuesday that India's economy would get back on track supported by systematic reforms.

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Sensex regained 34,000-mark while Nifty reclaimed 10,000 level. Sensex at Bombay Stock Exchange surged 284 points, or 0.84 per cent, to close at 34,110. Similarly, Nifty 50 at National Stock Exchange settled 82 points, or 0.83 per cent, up at 10,062. In the last six sessions, both indices appreciated around 11 per cent. Bank Nifty gained 411 points, or 2 per cent, to settle at 20,941.

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for June 4: 

Day Support Zone on Nifty is 9,825-9,925 and Higher Range is 10,300-10,450.

Day Support Zone on Bank Nifty is 19,950-20,250 and Higher Range is 21,650-21,950.

Small Day Range for trading on Nifty is 10,000-10,175, while the medium and bigger ranges are 9,950-10,300 and 9,825-10,350 respectively.

Small Day Range for trading on Bank Nifty is 20,650-21,350, while the medium and bigger ranges are 20,500-21,600 and 20,250-21,900 respectively.

Put-Call Ratio (PCR) is 1.59 and India Volatility Index (VIX) down 2% at 30.04

For Existing Long Positions:

Nifty intraday and closing stop loss are 9,950.

Bank Nifty intraday and closing stop loss are 20,500.

For Existing Short Positions:

Nifty intraday and closing stop loss are 10,200.

Bank Nifty intraday and closing stop loss are 21,100.

For New Positions:

Buy Nifty with a stop loss of 9,950 and target 10,175, 10,200, 10,300, 10,350.

Sell Nifty in 10,300-10,350 range with a stop loss of 10,450 and target 10,200, 10,175, 10,075.

Buy Bank Nifty with a stop loss of 20,500 and target 21,350, 21,500, 21,600, 21,900.

Sell Bank Nifty in 21,600-21,900 range with a stop loss of 22,100 and target 21,350, 21,150, 21,000.

Out of F&O Ban: Vodafone IDEA

Result Analysis

Buy Aurobindo Pharma Futures: Stop loss 750 and target 765, 780, 790. Very Strong operational performance.

Stocks of the Day

Buy Federal Bank Futures: Stop loss 45 and target 50, 52.50. Government focus on SMEs is a big positive. Valuations are attractive.