Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 22,175-22,225 levels and a strong buy zone at 22,000-22,075 levels on Thursday, May 9.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

For the Nifty Bank, he expects support to come in at 47,700-47,850 levels followed by a stronger support zone at 47,500-47,625 levels.

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

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

He expects a higher zone for the headline index at 22,350-22,400 levels and a strong sell zone at 22,450-22,550 levels.

For the banking index, he expects a higher zone at 48,200-48,325 levels and a strong sell zone at 48,475-48,625 levels.

ANIL SINGHVI MARKET STRATEGY  

  • FII index longs at 39 per cent vs 42 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.77 vs 0.78
  • Nifty Bank PCR at 0.81 vs 0.56
  • Volatility index India VIX up 0.5 per cent at 17.08

What is negative for Dalal Street?

  • FII outflows for five days in a row
  • Six back-to-back days of negative closing for Nifty Bank and four days for Nifty50 
  • Caution about election results among investors 
  • Investors in no mood to park funds in the market
  • In fact, investors eyeing opportunities to book profits at higher levels

What is positive for the market?

  • Six back-to-back days of gains on Wall Street (Dow) 
  • No big accident in mega-cap results 
  • Phase 3 voter turnout only 1.6 per cent lower vs 2019 
  • Signs of light positions ahead of election results

Editor's Take

  • Supportive global signals
  • Sentiment improving in PSU, midcap, smallcap stocks after Wednesday's recovery
  • FII outflows continue to put pressure on the market
  • Expect Dalal Street to move within a narrow range
  • Nifty50 seen moving within the 22,000-22,500 band 
  • It is important for Nifty50 to close in the green on the weekly F&O expiry on May 9
  • Positions in Nifty Bank light after expiry on Wednesday
  • In the cash segment, investors may buy stocks of companies posting good results

For existing long positions:

  • Nifty intraday stop loss at 22,150 and closing stop loss at 22,275
  • Nifty Bank intraday stop loss at 47,800 and closing stop loss at 47,950

For existing short positions:

  • Nifty intraday stop loss at 22,400 and closing stop loss at 22,475
  • Nifty Bank intraday stop loss at 48,300 and closing stop loss at 48,500

For new positions in Nifty:

  • Aggressive traders can sell Nifty in the 22,375-22,475 range with a strict stop loss at 22,550 for targets of 22,300, 22,275, 22,235, 22,185 and 22,150
  • Aggressive traders can buy Nifty in the 22,150-22,235 range with a strict stop loss at 22,050 for targets of 22,275, 22,300, 22,350, 22,400, 22,450 and 22,475

For new positions in Nifty Bank:

  • Aggressive traders can sell Nifty Bank in the 48,325-48,475 range with a strict stop loss at 48,650 for targets of 48,225, 48,150, 48,050, 47,900 and 47,850
  • Aggressive traders can buy Nifty Bank in the 47,700-47,850 range with a strict stop loss at 47,500 for targets of 47,975, 48,025, 48,150, 48,200, 48,275 and 48,325

F&O ban update

  • New in ban: Canara Bank, Piramal Enterprises
  • Already in ban: Zee Entertainment Enterprises, PNB, SAIL, Balrampur Chini, GMR Airports, AB Fashion, Voda Idea, Biocon
  • Out of ban: None

L&T results review

Overall good performance but margin below expectations
Orderbook at record high at Rs 4.75 lakh crore but management guidance not very strong 
Futures have support at Rs 3,480 and Rs 3,455, and are expected to stage higher levels of Rs 3,545 and Rs 3,590

Tata Power results review

  • Results below expectations
  • Futures have support at Rs 430 and Rs 422
  • Higher levels for futures placed at Rs 443 and Rs 447

Stock of the Day

Buy TVS Motor futures with a stop loss at Rs 2,000 for targets of Rs 2,035, Rs 2,070 and Rs 2,090

  • Strong quarterly performance
  • Management commentary positive
  • Better volume recovery expected than peers

Sell PEL futures with a stop loss at Rs 915 for targets of Rs 865, Rs 855 and Rs 845

  • Extremely weak performance
  • Weak core profit
  • Jefferies has cut PAT estimate for FY25-26 by 22-27 per cent 

Buy HAL futures with a stop loss at Rs 3,825 for targets of Rs 3,900 and Rs 3,930

  • Nomura has initiated coverage on the stock with a target of Rs 4,750 
  • HAL is well positioned in fighter aircraft segment
  • Significant capability upgrade a big positive

Buy SKF India shares with a stop loss at Rs 4,525 for targets of Rs 4,675, Rs 4,725 and Rs 4,800

  • Operational performance strong 
  • Revenue at 13-quarter high

Buy BEL futures with a stop loss at Rs 229 for targets of Rs 238, Rs 244 and Rs 249

  • Nomura has placed its target at Rs 300 
  • Company to benefit from its strong order book

Catch all the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.