Anil Singhvi Market Strategy June 4: Important levels to track in Nifty50, Nifty Bank today as counting of votes begins

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 23,050-23,125 levels and a stronger support zone at 22,800-23,000 levels on Tuesday, June 4, as the country awaited the much-anticipated the outcome of a six-weeks-long polling exercise in the world's largest democracy conducted from April 19 to June 1.

For the Nifty Bank, he expects support to come in at 49,950-50,100 levels and a stronger support zone at 49,425-49,675 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 

He sees a higher zone for the headline index coming in at 23,400-23,500 levels and the next at 23,600-23,800 levels.

For the banking index, he expects a "blue-sky zone" above the 51,200 mark.

EDITOR’S TAKE

• Traders and investors should avoid taking hasty decisions as vote-counting takes place during the course of the day 
• Postal ballots will be counted first which have a small proportion in the total votes
• Trends are visible even in postal ballots
• The right direction, however, will only emerge once will the EVM votes are counted
• That is why one should refrain from taking decisions in the beginning of the day
• Be prepared for wild swings in the market
• Trade in small quantities following strict stop losses
• Deeper stop losses should be put in place
• Investors should avoid buying from a 2-3-day perspective and act with a 2-3-year horizon in mind
• Nifty target at 23,600-23,800 levels if NDA bags 370 seats in the Lok Sabha as predicted by exit polls
• Nifty target at 24,000-24,200 levels if NDA bags more than 400 seats
• Nifty target at 22,900-23,100 levels if NDA bags around 325 seats

Where should investors focus?

• PSU, railway, power, defence, oil & gas, energy
• Telecom, manufacturing, FMCG, market infra

ANIL SINGHVI MARKET STRATEGY  

The market wizard points out the following: 

• FII long positions at 28 per cent vs 14 per cent the previous day
• Nifty put-call ratio (PCR) at 1.04 vs 1.00
• Nifty Bank PCR at 0.75 vs 0.83
• Volatility index India VIX down 16.5 per cent at 20.52

For existing long positions:

• Nifty intraday and closing stop loss at 22,950

• Nifty Bank intraday stop loss at 49,900 and closing stop loss at 49,400

For existing short positions:

• Nifty intraday stop loss at 23,500 and closing stop loss at 23,350

• Nifty Bank intraday and closing stop loss at 51,200

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