Anil Singhvi’s Strategy June 7: Market Trend is Neutral; Buy ICICI Lombard Cash with Stop Loss 1165

Amid neutral global market and futures and options (F&O), negative foreign institutional investors (FII) and domestic institutional investors (DIIs) cues, the short-term trend of the domestic Indian market will be neutral on Friday, June 7, 2019, and sentiment is cautious.  

The domestic markets witnessed the sharpest fall of 2019 on Thursday, June 6, 2019, despite Reserve bank of India (RBI) slashed repo rate by 0.25 per cent. Nifty closed down by 177.90 points, or 1.48 per cent, at 11,843.75 levels while BSE Sensex was down by 553.82 points, or 1.38 per cent to 39,529.72. Similarly, Bank Nifty lost 731.65 points, or 2.32 per cent and settled at 30,857.40. 

See Anil Singhvi's tweet below:

#MarketStrategy | पढ़िए #Nifty और #BankNifty पर अनिल सिंघवी की दमदार रणनीति।@AnilSinghviZEE pic.twitter.com/QQMU7eYi9o

— Zee Business (@ZeeBusiness) June 7, 2019

Apart from this, RBI in its bi-monthly monetary policy review yesterday reduced the repo rate by 25 basis points to 5.75 per cent from 6.0 per cent with immediate effect. Consequently, the reverse repo rate stands adjusted to 5.50 per cent, and the marginal standing facility rate and the Bank Rate to 6.0 per cent. The six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das also unanimously decided to change the stance of monetary policy from neutral to accommodative.

Considering the weak global demand due to the escalation in trade wars and weakened private consumption in rural areas, Mr Das informed that the RBI has lowered the GDP growth forecast for 2019-20 to 7 per cent from 7.2 per cent. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for June 7:

The small and medium day range for trading on Nifty lies between 11,800-11,925 and 11,725-11,950 respectively. The bigger range resides at 11,650-12,035.
 
The small and medium day range for trading on Bank Nifty lies between 30,650-31,000 and 30,500-31,250. 

Intraday support zone on Nifty stands at 11,800-11,825 while the supply zone resides at 11,925-11,950. 

Positional important support zone for Nifty 11,650-11,725. Below this trend will be negative.  

For Existing Long Positions:

Nifty intraday and closing basis stop loss 11,800.

Bank Nifty intraday and closing basis stop loss 30,800.
 
For Existing Short Positions:

Nifty intraday and closing basis stop loss 11,950.

Bank Nifty intraday stop loss 31,000 and closing basis stop loss 31,250. 

For New Positions:

Buy Nifty near 11,800 with the stop loss of 11,725 and target 11,850, 11,900, 11,925.  

Sell Nifty in 11,925-11,950 range with the stop loss of 12,000 and target 11,850, 11,825.
 
Buy Bank Nifty near 30,500 with the stop loss of 30,450 and target 30,650, 30,800. 

Sell Bank Nifty in 31,000-31,200 range with the stop loss of 31,300 and target 30,850.  

2 Enter F&O Ban: DHFL, PC Jewellers. 

Already in Ban: IDBI

The put-call ratio (PCR) stands at 1.36 and the volatility index (VIX) is 15.52. 

Stock of the Day:
Buy ICICI Lombard Cash: Stop loss 1165 and target 1200, 1220. Third party insurance premium to go up by 21 per cent from June 16.

Aaj Ka Hero:
Sell JSW Steel Futures: Stop loss 270 and target 264, 261. Promoters sold 14 lakh shares in the open market.