Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects a support zone for the headline Nifty50 index to emerge at 22,800-22,875 levels and a strong buy zone at 22,700-22,775 levels on Tuesday, May 28.

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For the Nifty Bank, he expects support to come in at 48,900-49,100 levels and a strong buy zone at 48,650-48,775 levels.

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

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

He sees a higher zone for the headline index coming in at 22,965, 23,025 and 23,100 levels and a "blue-sky zone" above 23,150.

For the banking index, he expects a higher zone at 49,525, 49,675 and 49,950 levels and a blue-sky zone above the 50,000 mark.

EDITOR’S TAKE

  • FIIs emerged buyers in the futures segment in a big way
  • One can expect support at lower levels and profit-taking at higher levels
  • Traders to get opportunities on both sides amid seesaw moves
  • One should keep buying at key support levels
  • Select midcap and smallcap shares are set to see strong buying interest

Why did the market fall in the final 45 minutes of trade on Monday?

  • Strong FII inflows took Dalal Street to a lifetime high 
  • PMS and HNI investors booked profits
  • Selling at higher levels also took place to secure good profits ahead of election results
  • Profit-taking noticed in F&O options
  • Wild swings to continue in the market till June 3 

ANIL SINGHVI MARKET STRATEGY  

  • FII index long positions at much higher levels at 52 per cent vs 49 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.02 vs 1.14
  • Nifty Bank PCR at 0.98 vs 1.11
  • Volatility index India VIX up 6.8 per cent at 23.19

For existing long positions:

  • Nifty intraday and closing stop loss at 22,850
  • Nifty Bank intraday stop loss at 49,000 and closing stop loss at 48,750

For existing short positions:

  • Nifty intraday stop loss at 23,150 and closing stop loss at 23,000
  • Nifty Bank intraday stop loss at 49,700 and closing stop loss at 49,425

For new positions in Nifty:

  • The best range to buy Nifty is 22,800-22,875 with a stop loss at 22,700 for targets of 22,925, 22,950, 23,000, 23,025 and 23,100
  • Aggressive traders can sell Nifty in the 23,025-23,100 range with a strict stop loss at 23,150 for targets of 22,975, 22,935, 22,900, 22,875, 22,800 and 22,750

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 and 49,275
  • Aggressive traders can buy Nifty Bank in the 48,900-49,050 range with a strict stop loss at 48,750 for targets of 49,275, 49,400, 49,475, 49,600, 49,675 and 49,950
  • Aggressive traders can sell Nifty Bank in the 49,475-49,675 range with a strict stop loss at 49,750 for targets of 49,275, 49,125, 49,050, 48,975, 48,900 and 48,825

F&O ban update

  • Out of ban: NALCO, India Cements, Bandhan Bank, PNB
  • Already in ban: Biocon, GNFC, Vodafone Idea, Hindustan Copper, Piramal Enterprises
  • New in ban: None

Results reviews

NALCO 

  • Results better than estimates
  • Strong operational performance
  • The stock is up 25 per cent in three months and 140 per cent in a year
  • It exits F&O ban today
  • A gap-up opening expected on strong results
  • Don’t chase, profit-booking expected at higher levels

NMDC 

  • Weak results
  • Analyst call at 11 am
  • Operational performance missed estimates
  • The stock may see a small correction

Stocks of the Day

Buy United Spirits futures with a stop loss at Rs 1,145 for targets of Rs 1,180, Rs 1,195 and Rs 1,210

  • Post-results management conference call impressive 
  • Strong premiumisation growth story
  • Company confident of double-digit growth for FY25

Buy Natco Pharma shares with a stop loss at Rs 1,015 for targets of Rs 1,040, Rs 1,054 and Rs 1,070

  • Operational performance very strong 
  • Highest ever revenue and profit for the whole year

Buy Sumitomo Chemical shares with a stop loss at Rs 435 for targets of Rs 449, Rs 454 and Rs 460

  • Results better than estimates
  • Operational performance very strong 

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