Anil Singhvi Market Strategy June 5: After Lok Sabha election results, important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 21,625-21,825 levels and a stronger support zone at 21,275-21,525 levels on Wednesday, June 5, a day after election results. For the Nifty Bank, he expects support to come in at 46,325-46,575 levels and a stronger support zone at 45,825-46,075 levels.

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

• Global: Positive
• FII: Negative
• DII: Negative
• F&O: Neutral
• Sentiment: Negative
• Trend: Negative

• FII long positions at 13 per cent vs 28 per cent the previous day

• Nifty put-call ratio (PCR) at 0.73 vs 1.04

• Nifty Bank PCR at 0.46 vs 0.75

• Volatility index India VIX up 27.75 per cent at 26.75

He sees a higher zone for the headline index coming in at 21,975-22,075 levels and a profit-booking zone at 22,200-22,500 levels.

For the banking index, he expects a higher zone at 47,350-47,500 levels and a profit-booking zone at 47,950-48,225 levels.

Dalal Street to take direction from five key things

• How soon and under whose leadership will a new government be formed?
• How many departments will allies get in the new government?
• Will the Budget be strong or populist?
• Will FII outflows intensify?
• Will domestic funds stand their ground or escape?

What to expect from FIIs

• FIIs are already in a mood to sell
• No possiblity of FIIs returning to the market anytime soon given the election results
• FIIs will closely track the alliance-based government's decisions
• FIIs will only stage a significant comeback after Union Budget

What to expect from DIIs

• Dalal Street just underwent the biggest and the fastest correction in three years
• It is a litmus test for new traders and investors
• Until now, domestic investors countered FII outflows
• Absence of inflows in SIPs and mutual funds to be problematic for the market
• It will be a big problem if retail and high net-worth investors undertake redemption and selling

What to expect on Dalal Street

• Some price-wise correction possible on Wednesday as well
• Time-wise correction definite
• The market will put investors' long-term attitute to test
• There will be money-making opportunities but smaller and slower
• Portfolio changes necessary
• Defensive sectors to be among the faviourites on Dalal Street in a shift from high-beta sectors
• FMCG to perform better than PSUs
• Traders who earned money only on the upside in the past three years should prepare for the real test

What should investors do?

• Save existing investments
• Continue SIP investments
• Wait for clarity on key triggers before investing majorly
• Sectoral and stock-specific portfolio changes a must-do
• Increase weightage in defensive stocks in the portfolio and decrease in high beta
• Buying in largecap stocks imporatnt along with midcap and smallcap scrips

What should traders do?

• Wild swings may continue in the market for a while
• Keep intraday and overnight positions light
• Follow stop loss levels strictly
• Don't just buy, learn to trade by selling as well

EDITOR’S TAKE

• FII outflows to put pressure at higher levels
• It is important for the market to hold Tuesday's lows

ANIL SINGHVI MARKET STRATEGY   ​

For existing long positions:

• Nifty intraday and closing stop loss at 21,600

• Nifty Bank intraday stop loss at 46,000 and closing stop loss at 46,300

For existing short positions:

• Nifty intraday stop loss at 22,225 and closing stop loss at 22,500

• Nifty Bank intraday stop loss at 47,500 and closing stop loss at 48,000

F&O ban

• Already in ban: Zee Entertainment Enterprises
• New in ban: None
• Out of ban: None

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