Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 22,800-22,900 levels on Monday, June 3, a day before the counting of votes under the 2024 Lok Sabha elections. For the Nifty Bank, he expects support to come in at 49,425-49,600 levels.

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

  • FII long positions oversold at 14 per cent vs 13 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.00 vs 1.12
  • Nifty Bank PCR at 0.83 vs 0.88
  • Volatility index India VIX up two per cent at 24.6 

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He sees a higher zone for the headline index coming in at 23,000-23,125 levels and a "blue-sky zone" above 23,150.

For the banking index, he expects a higher zone at 49,900-50,000 and a blue-sky zone above the 50,050 mark.

What should investors do after exit polls?

  • Invest from a 3-5-year perspective
  • Don't use all surplus funds today, save some money for investing in case of a dip in the market post-election results
  • It is better to invest in quality midcap and smallcap stocks
  • Favourite themes: PSU, railway, power, defence, energy, telecom, manufacturing, FMCG, market infra

What should traders do after exit polls?

  • Buy at the first support in case of profit-taking after a gap-up opening
  • Buying today and selling tomorrow can be risky

EDITOR'S TAKE

  • If actual election results match exit polls-based prediction of NDA winning 370 seats, then Nifty target at 23,400-23,500 levels
  • Nifty target at 24,000-24,500 if NDA crosses 400-seat mark
  • Nifty target at 22,800-23,000 if NDA bags around 325 seats 
  • Market to stage lifetime highs as soon as opening
  • Expect big short-covering moves by FIIs
  • Domestic fund inflows expected 
  • Investors choosing to wait may experience FOMO

10 factors that may aid buying

  • Signs of a strong start to the month
  • Exit poll predictions strong
  • Strong GDP data
  • Strong growth in GST collections 
  • 575-point jump in Dow
  • Strong short positions by FIIs; index longs at just 14 per cent 
  • Strong buying in the cash and stock futures segments by FIIs on the first day of the June F&O series
  • Domestic fund inflows at Rs 2,100 crore on the first day of the series
  • Fall in crude oil price
  • Investors and traders holding light positions at the beginning of the series

ANIL SINGHVI MARKET STRATEGY  

For existing long positions:

  • Nifty intraday stop loss at 22,800 and closing stop loss at 22,700
  • Nifty Bank intraday and closing stop loss at 48,975

For existing short positions:

  • Nifty intraday stop loss at 23,125 and closing stop loss at 23,000
  • Nifty Bank intraday stop loss at 50,050 and closing stop loss at 49,425

Birthday pick

Buy Pfizer shares for a target of Rs 6,200

  • Bullish on the pharma sector
  • Strong MNC parentage
  • Valuations attractive 

Buy Vodafone Idea shares in the cash segment for targets of Rs 18 and Rs 20

  • Extremely bullish on the telecom sector
  • Idea could be the best turnaround story
  • Expect a tariff hike post-elections
  • Better to hold for three years

Buy IOC shares in the cash segment for targets of Rs 200 and Rs 220

  • Extremely bullish on the PSU oil & gas and energy space
  • Valuations attractive 
  • Huge dividend paying company

Buy DLF shares for targets of Rs 1,000, Rs 1,200 and Rs 1,500

  • Strong growth in real estate sector
  • Market leader DLF is ready for much stronger growth
  • Hold for 1-3 years

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