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.

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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:

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

  • FII index longs at 31 per cent vs 32 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.20 vs 1.15
  • Nifty Bank PCR at 0.80 vs 0.75
  • Volatility index India VIX down 1.5 per cent at 21.47

For existing long positions:

  • Nifty intraday and closing stop loss at 22,400
  • Nifty Bank intraday and closing stop loss at 47,650

For existing short positions:

  • Nifty intraday and closing stop loss at 22,650
  • Nifty Bank intraday and closing stop loss at 48,250

For new positions in Nifty:

  • 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
  • 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:

  • 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
  • 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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