Anil Singhvi Market Strategy May 23: Important levels to track in Nifty50, Nifty Bank today
Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi shares his strategy for today's session on Dalal Street. Check out his take on key support and resistance levels for the Nifty and the Nifty Bank, and how he views the market.
Anil Singhvi Market Strategy, Saturday Special Trading: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 22,475-22,525 levels and a strong buy zone at 22,350-22,425 levels on Thursday, May 23.
For the Nifty Bank, he expects support to come in at 47,550-47,625 levels and a stronger support zone at 47,300-47,450 levels.
Here's how Anil Singhvi sums up the market setup:
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Global: Negative
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FII: Negative
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DII: Positive
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F&O: Neutral
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Sentiment: Positive
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Trend: Positive
He expects a higher zone for the headline index at 22,625-22,700 levels and a strong sell zone at 22,750-22,800 levels.
For the banking index, he expects a higher zone at 47,925-48,050 levels and a profit-booking zone at 48,100-48,250 levels.
RBI announces mega dividend for government
- RBI has announced a dividend of Rs 2.11 lakh crore for the exchequer, double than expected`
- Government will have more money to spend
- Fiscal deficit likely to narrow by 20 bps
- Bond yields expected to decrease slightly
Where did RBI earn this amount from?
- Forex reserves at a record $644 billion
- Interest on forex reserves led to higher RBI income
- Big gains from buying & selling in the forex market
- Loans to commercial banks amid low liquidity conditions led to higher interest for RBI
EDITOR'S TAKE
- Weak global signals amid FII selling by FIIs once again
- Nifty to stage seesaw moves following a lacklustre start to the day ahead of the expiry of weekly derivatives due today
- RBI's mega dividend to support the mood of the market as well as commercial banks
- On Wednesday, Nifty Bank staged a 500-point recovery from its intraday low
- Bond yield eased by one per cent to 6.993
- Bond yields hit a one-year low
- One must buy at key support levels and book profit at higher levels
- Nifty expected to find strong support at 22,400-22,500 levels and undergo profit-booking at 22,700-22,800 levels
- For Nifty Bank, strong support placed at 47,300-47,450 levels and profit-booking range at 48,050-48,200 levels
ANIL SINGHVI MARKET STRATEGY
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FII index longs at 31 per cent vs 32 per cent the previous day
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Nifty put-call ratio (PCR) at 1.20 vs 1.15
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Nifty Bank PCR at 0.80 vs 0.75
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Volatility index India VIX down 1.5 per cent at 21.47
For existing long positions:
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Nifty intraday and closing stop loss at 22,400
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Nifty Bank intraday and closing stop loss at 47,650
For existing short positions:
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Nifty intraday and closing stop loss at 22,650
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Nifty Bank intraday and closing stop loss at 48,250
For new positions in Nifty:
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The best range to buy Nifty is 22,475-22,525 with a stop loss at 22,400 for targets of 22,600, 22,625, 22,650, 22,700 and 22,775
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Aggressive traders can sell Nifty in the 22,650-22,750 range with a strict stop loss at 22,825 for targets of 22,600, 22,525, 22,500, 22,475, 22,425 and 22,400
For new positions in Nifty Bank:
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The best range to buy Nifty Bank is 47,450-47,625 with a stop loss at 47,300 for targets of 47,775, 47,850, 47,925, 47,975, 48,050, 48,125 and 48,225
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Aggressive traders can sell Nifty Bank in the 48,050-48,250 range with a strict stop loss at 48,350 for targets of 47,925, 47,850, 47,775, 47,700, 47,625, 47,550 and 47,450
F&O ban update
- New in ban: Hindustan Copper, Metropolis
- Out of ban: GMR Airports, Granules
- Already in ban: IEX, NALCO, PNB, AB Capital, Balrampur Chini, Bandhan Bank, Biocon, Vodafone Idea, India Cements, Piramal Enterprises, Zee Entertainment Enterprises
Results reviews
Petronet LNG
- Sell Petronet LNG futures with a stop loss at Rs 317 for targets of Rs 301 and Rs 293
- Extremely weak results
- Volumes and realisations much lower than expectations
Power Grid
- Power Grid futures have support at Rs 315 and expected to have a higher level at Rs 337
- Results little below estimates
- Stock doesn’t react much to results
Ramco Cements
- Ramco Cements futures with support at Rs 764 and a higher level at Rs 792
- Results in line with expectations
- Volume growth strong at 17 per cent
- Management commentary positive
Jubilant FoodWorks
- Jubilant FoodWorks futures have support at Rs 462 and Rs 470 and higher levels at Rs 492 and Rs 497
- Results below estimates
- Outlook positive
- Stock will rebound if opens lower
Stocks of the Day
Buy Gland Pharma with a stop loss at Rs 1,770 for targets of Rs 1,950, Rs 2,000, Rs 2,075 and Rs 2,115
- Results extraordinary on all parameters
- Stock down eight per cent in three months
- Stock to run 10-20 per cent on strong numbers
Buy Garden Reach Shipbuilders with a stop loss at Rs 1,175 for targets of Rs 1,210, Rs 1,235 and Rs 1,250
- Numbers extremely good
- Highest ever revenue, EBITDA and profit
- Only problem is stock has already risen 20 per cent in five days and 50 per cent in three months
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