Anil Singhvi shares tips on how to find the best stop loss for your target

Zee Business Managing Editor Anil Singhvi suggests that the stop loss that an investor or trader chooses should always be customised. Discussing the way to ensure a perfect stop loss for a position in the market, the market guru said: "There is very less time when you don't put a stop loss as per your position because everyone’s position is at a different level; they have different levels of risk, and different levels of profit."

When is F&O expiry?

His remarks come on a day when the Indian share market is set for a monthly derivatives expiry due at the end of the session. Generally, the monthly futures and options (F&O) series expire at the end of the session on the last Thursday of a month, or one day prior if the market is shut on Thursday.

This time around, stock exchanges BSE and NSE will remain shut on Thursday for Ram Navami, and trading will resume on Friday after the end of Wednesday's session. Hence, the expiry has shifted by one day to March 29. 

Typically, the last day of a monthly series is marked with high volatility as traders rush to square off their open positions. 

EDITOR'S TAKE: Stop loss is an art, says Anil Singhvi

Using the occasion to explain the concept of stop loss, Anil Singhvi said: "Some people put a stop loss to protect their profit while others put it to protect their losses. In the lowest time also, some have a low capacity to buy while others have a higher capacity. So (deciding on a) stop loss is an art and as much as you practice you will learn more. It doesn't come in one day but the experience can make you better."

"Today’s Nifty intraday and closing stop loss could be 16,800. If someone wants to put a small stop loss on a closing basis, then it could be yesterday's closing price. The lowest closing price he finds at 16,945 in the whole downtrend, and as today is the monthly expiry date, then 16,800 will be better for intraday and closing stop loss," he said. 

The Nifty index was on track to finish the expiry day in the green, having gyrated in a 130-odd-point range during the session — broadly within the 17,050-16,950 band. 

Nifty Bank

"For Nifty Bank, intraday and closing stop loss should be 39,250 because you have got the cushion. But, if you want to keep a longer stop loss keeping the (F&O) expiry mood in view, keep the stop loss at 39,000. However, you need to decide between these two," he said.

Nifty 50 

"If you are on the short side, the intraday stop loss should be at 17,225, and the closing stop loss should be at 17,150, and you can adjust as per your position," he added. 

Singhvi often uses live market situations to simplify complex concepts for viewers. Check out Anil Singhvi's market strategy for March 29

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