Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects a strong buy zone for the headline Nifty50 index to emerge at 22,800-22,900 levels on Monday, May 27.

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For the Nifty Bank, he expects support to come in at 48,775-48,875 levels and a strong buy zone at 48,500-48,650 levels.

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

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

He sees a higher zone for the headline index coming in at 23,000-23,025 levels and a "blue-sky zone" above 23,050.

For the banking index, he expects a higher zone at 49,250-49,400 levels and a profit-booking zone at 49,475-49,600 levels.

EDITOR’S TAKE

  • Mixed global signals
  • Mild selling by FII in stocks but strong buying in futures
  • Strong buying by domestic funds
  • Phase 6 voter turnout data positive
  • Dalal Street technically strong with robust momentum
  • Concerns about election results now behind
  • Signs of buying gathering steam on Dalal Street amid hopes of good election results
  • Pharma and metal spaces leaning towards buying

ANIL SINGHVI MARKET STRATEGY  

  • FII index longs at 49 per cent vs 42 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.14 vs 1.37
  • Nifty Bank PCR at 1.11 vs 1.21
  • Volatility index India VIX up 1.5 per cent at 21.71

For existing long positions:

  • Nifty intraday stop loss at 22,875 and closing stop loss at 22,750
  • Nifty Bank intraday and closing stop loss at 48,500

For existing short positions:

  • Nifty intraday and closing stop loss at 23,050
  • Nifty Bank intraday and closing stop loss at 49,150

For new positions in Nifty:

  • The best range to buy Nifty is 22,800-22,900 with a stop loss at 22,750 for targets of 22,950, 23,000 and 23,025; one may hold the positions above 23,050 with a trailing stop loss
  • Aggressive traders can sell Nifty below 22,875 with a strict stop loss at 23,050 for targets of 22,800, 22,750, 22,700 and 22,650

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 48,650-48,775 with a stop loss at 48,500 for targets of 48,900, 48,975, 49,050, 49,125, 49,250, 49,400 and 49,475
  • Aggressive traders can sell Nifty Bank in the 49,400-49,525 range with a strict stop loss at 49,650 for targets of 49,250, 49,125, 49,050, 48,975, 48,900 and 48,825

F&O ban update

  • New in ban: Biocon, GNFC, Vodafone Idea                   
  • Out of ban: AB Capital, Balrampur Chini, IEX, Metropolis, Zee Entertainment Enterprises
  • Already in ban: Hindustan Copper, NALCO, PNB, Bandhan Bank, India Cements, Piramal Enterprises     

Results reviews

Divi’s Labs 

  • Buy Divi’s Labs futures with a stop loss at Rs 4,110 for targets of Rs 4,185, Rs 4,225 and Rs 4,290
  • Strong results after many quarters
  • Outlook even stronger
  • Expects double-digit revenue growth in FY25

Torrent Pharma 

  • Buy Torrent Pharma futures with a stop loss at Rs 2,595 for targets of Rs 2,675, Rs 2,695 and Rs 2,740
  • Strong performance in all markets except the US 
  • Improvement in operational performance
  • Strong outlook

Aurobindo Pharma 

  • Buy Aurobindo Pharma futures with a stop loss at Rs 1,217 for targets of Rs 1,247, Rs 1,260 and Rs 1,275
  • A second consecutive quarter of good performance
  • Strong operational performance
  • Strong growth across all segments
  • Watch out for conference call at 8:30 am

Glenmark Pharma 

  • Results below estimates on all parameters
  • Strong margins and EBITDA
  • Buy on a big gap-down opening
  • Best time to buy at a 3-5 per cent fall

United Spirits 

  • Mixed results
  • Wait for management commentary at 3:30 pm

NTPC 

  • Mixed results
  • Some weakness possible
  • Buy at lower levels

Hindalco 

  • Results came on Friday
  • Positive brokerage reports

Ashok Leyland 

  • Results came on Friday
  • Strong conference call
  • Outlook positive

Stocks of the Day 

Buy Hindustan Copper shares in the cash segment with a stop loss at Rs 365 for targets of Rs 377, Rs 382 and Rs 388

  • Stock in F&O ban
  • Results strong on all parameters
  • Margin hits an 11-quarter high
  • The stock has surged 42 per cent in three months

Buy Cochin Shipyard shares with a stop loss at Rs 1,900 for targets of Rs 1,950, Rs 1,990 and Rs 2,025

  • Exceptionally strong results
  • Profit up 660 per cent
  • Revenue doubles
  • The only problem is that the stock has risen 35 per cent in five days and 120 per cnet in three months                 

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