Anil Singhvi's Market Strategy June 5: 10,600 and 26,300 to be a deciding level in Nifty and BankNifty

Nifty and BankNifty on  Monday closed lower by 67.70 points at 10,628.50 and 435.25 points at 26,257.55 respectively. The positive global and neutral Domestic Institutional Investors (DIIs),  Future and Options (F&O), but negative foreign institutional investors (FII) plus weak sentiment, signal that the short trend of the domestic market is still going to be positive on June 5, 2018 (Tuesday). 

However, yesterday’s surprise fall created panic among traders. Huge sell off in cash stocks is a big worry for retail investors. Notably, the discount in Nifty and BankNifty increased to 30 and 67 points. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for June 5:

10,600 and 26,300 are going to be deciding points in Nifty and BankNifty respectively. 

In case of Nifty, 10,550 to 10,675 is going to be a trading range today. And if Nifty crosses the two points than the traders can see an additional move of 50 points on the chart. 

Anil Singhvi thinks that any break down at 10,600 will act as the first hint towards the weakness of the market.  

When it comes to BankNifty then 26,000 to 26,500 is going to be a trading range and any move above these points means that the traders will see an additional move of 150 points on the chart. 

Singhvi suggests that traders reduce their buying positions on Nifty and BankNifty if it closes below the mark of 10,600 and 26,000 respectively. 

Sell and Buy Strategy for Nifty  

Sell Nifty with a stop loss at 10,675 and target of 10,600 to 10,550. 

Buy Nifty below 10,550 with a stop loss of 10,500 and target of 10,600. 

Sell and Buy Strategy for BankNifty  

Sell BankNifty with a stop loss at 26,500 and Target of 26,050. 

Buy BankNifty near 26,000 with a stop loss of 25,900 and target of 26,150-26,200. 

The put-call ratio (PCR) for June 5 stands at 1.39 and volatility index (VIX) is 13.88. 

Recently listed IPOs and Small Caps are going to be negative and traders are advised not to get involved in the positional trade in these sectors. 

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Future and Option (F&O) traders 

No stock is listed in the F&O Ban list. 

Stock of the day: Biocon