Anil Singhvi's Market Strategy on June 22: Pharma, oil stocks eyed; market trend neutral

Indian stocks closed in the red amid a weak trend overseas on June 21, 2018. BSE Sensex shed 114.95 points or 0.32 per cent to close at 35,432.39. Nifty settled at 10,741.10, losing 30.95 points or 0.29 per cent, while NiftyBank closed down by 60.75 points or 0.23 per cent at 26,496.

The indices opened higher and hit fresh intra-day high at 35,679 points. Nifty also hit a high and crossed the mark of 10,800 in the intra-day trade. However, Index hit fresh intra-day low and closed lower by 0.32 per cent.

Positive trend from foreign institutional investors (FII), domestic Institutional Investors (DIIs), and neutral future and options (F&O) amid negative global sentiments suggest that the short-term trend of the domestic market is going to be neutral on Friday. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for June 22: 

10,750 and 26,500 are going to be the deciding level on Nifty and BankNifty, respectively. 

Small trade range on Nifty is going to be between 10,700 and 10,800, while 10,650-10,825 will be the bigger trade range.

In case of BankNifty, the small trade range stands at 26,350-26,600 while 26,250-26,700 will be treated as the bigger range.

10,800-10,825 and 26,650-26,700 are going to be profit booking zone at Nifty and BankNifty respectively.

Anil Singhvi suggests that traders should reduce their buying positions on Nifty and BankNifty if they close below the mark of 10,700 and 26,400 respectively.

However, traders can initiate new trades on Nifty if it closes above the mark of 10,800. 

Buy and Sell Strategy on Nifty  

Sell Nifty with a stop loss of 10,800 and target of 10,700-10,650.

Buy Nifty near 10,650 with a stop loss of 10,625 and target of 10,700. 

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Buy and Sell Strategy on BankNifty  

Sell BankNifty with the stop loss of 26,650 and target of 26,400-26,325-26,250.

Buy BankNifty near 26,250 with a stop loss of 26,150 and target of 26,350-26,450.

The put-call ratio (PCR) for June 20 stands at 1.48 and volatility index (VIX) is 12.45.

Negative: Pharma, OMC

Enters F&O Ban: CG Power

Out of Ban: Jet Airways

3 Already In Ban: DHFL, Infibeam, JP Associate