Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 24,125-24,200 levels and a strong buy zone at 24,000-24,075 levels on Friday, July 5. For the Nifty Bank, he expects support to come in at 52,500-52,650 levels and a stronger support zone at 52,175-52,375 levels.

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

  • Global: Neutral
  • FII: Positive
  • DII: Negative
  • F&O: Neutral
  • Sentiment: Positive
  • Trend: Positive
  • FII long positions unchanged at 84 per cent as the previous day
  • Nifty put-call ratio (PCR) at 1.27 vs 1.24
  • Nifty Bank PCR at 1.12 vs 1.15
  • Volatility index India VIX down 2.5 per cent at 12.86

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He sees a higher zone for the headline index at 24,300-24,400 levels and a "blue-sky zone" above 24,425. 

For the banking index, he expects a higher zone at 53,175-53,350 levels and a blue-sky zone above 53,400.

High alert in banks

  • HDFC Bank quarterly update weak
  • Slowing deposit growth a big problem
  • Deposits at commercial banks have shrunken by Rs 3.5 lakh crore in 2.5 months
  • Term deposit more expensive for banks
  • Watch out for Q1 deposit growth data in quarterly updates
  • Net interest margins (NIMs) to be most important
  • Avoid fresh buying in banking stocks, especially private bank stocks 
  • Book some profits in stocks of banks with good profitability

What to do with HDFC Bank shares?

  • Investors who have purchased the stock two quarters ago can book profits
  • Investors with a 6-12-month perspective can book profits
  • Investors with a view of 1-3 years can hold on to their positions

EDITOR’S TAKE 

  • Global signals mixed
  • Strong net buying by FIIs but DII outflow pressure worsening
  • Weak quarterly update by HDFC Bank
  • Banking stocks to remain under pressure
  • Nifty Bank to put pressure on Nifty50
  • Wait for either a fresh high or significant support for new buying
  • Defensive stocks expected to see buying interest
  • IT, pharma, FMCG stocks to stay strong

ANIL SINGHVI MARKET STRATEGY   ​

For existing long positions:

  • Nifty intraday stop loss at 24,150 and closing stop loss at 24,000
  • Nifty Bank intraday and closing stop loss at 52,800

For existing short positions:

  • Nifty intraday stop loss at 24,425 and closing stop loss at 24,325
  • Nifty Bank intraday stop loss at 53,400 and closing stop loss at 53,125

For new positions in Nifty50: 

  • The best range to buy Nifty is 24,050-24,200 with a stop loss at 23,950 for targets of 24,235, 24,275, 24,300 and 24,375
  • Aggressive traders can sell Nifty with a strict stop loss at 24,425 for targets of 24,235, 24,200, 24,150, 24,125, 24,050 and 24,000

For new positions in Nifty Bank: 

  • Sell Nifty Bank with a stop loss at 53,400 for targets of 52,800, 52,750, 52,650, 52,600, 52,500, 52,375, 52,250 and 52,175
  • Buy Nifty Bank in the 52,000-52,250 range with a stop loss at 51,900 for targets of 52,375, 52,475, 52,600, 52,650, 52,750 and 52,800
  • Aggressive traders can buy Nifty Bank in the 52,375-52,500 range with a strict stop loss at 52,150 for targets of 52,600, 52,650, 52,750, 52,800, 52,875 and 52,975

Stocks in F&O ban

  • New in ban: Bandhan Bank, Piramal Enterprises, AB Fashion
  • Already in ban: Hindustan Copper, India Cements
  • Out of ban: None

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