Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support emerging at 22,000-22,075 levels and a strong buy zone at 21,825-21,950 levels for the headline Nifty50 index on Thursday, April 18.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

For the Nifty Bank, he expects initial support to come in at 47,125-47,250 levels followed by a stronger support zone at 46,875-47,025 levels.

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

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

He expects a higher level for the headline index at 22,200-22,300 levels and a strong sell zone at 22,350-22,450 levels. 

For the banking index, Singhvi expects a higher zone at 47,675-47,825 and a strong sell zone at 47,900-48,075 levels. 

ANIL SINGHVI MARKET STRATEGY  

  • FII index longs at 44 per cent vs 49 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.76 vs 0.81
  • Nifty Bank PCR at 0.85 vs 0.60
  • Volatility index India VIX up 1.5 per cent at 12.64

Editor's take

  • No news of fresh attacks in Iran-Israel conflict
  • Israel PM warned of retaliatory action
  • Crude oil at $88 a good sign 
  • Dow has stopped falling for two days
  • Israel tensions are triggering limited reactions on Wall Street
  • Wall Street market participants are more worried about delayed rate cuts
  • FIIs withdrawing funds aggressively from Dalal Street
  • Important for Nifty50 to hold 22,000 on a closing basis on the day of weekly F&O expiry
  • Light positions in Nifty Bank following weekly expiry

What should traders do?

  • Fears of war behind but markets not out of the woods yet
  • Intraday and overnight swings to persist for now
  • Traders should keep their positions light

What should investors do?

  • Don't panic
  • Keep tracking global developments closely; stay cautious
  • If Israel retaliates, make sure not to panic and buy instead
  • Any 1-2 per cent gap-down opening on Dalal Street should be used as an opportunity to buy aggressively
  • Such situations have come and gone so many times

For existing long positions:

  • Nifty intraday and closing stop loss at 22,000
  • Nifty Bank intraday and closing stop loss at 47,250

For existing short positions:

  • Nifty intraday and closing stop loss at 22,300
  • Nifty Bank intraday stop loss at 47,800 and closing stop loss at 48,000

For new positions in Nifty:

  • Aggressive traders can sell Nifty in the 22,250-22,350 range with a strict stop loss at 22,450 for targets of 22,200, 22,150, 22,125, 22,075, 22,025 and 22,000
  • Aggressive traders can buy Nifty in the 21,950-22,075 range with a strict stop loss at 21,900 for targets of 22,150, 22,200, 22,250, 22,275 and 22,300

For new positions in Nifty Bank:

  • Aggressive traders can sell Nifty Bank in the 47,775-47,900 range with a strict stop loss at 48,050 for targets of 47,725, 47,625, 47,500, 47,325 and 47,250
  • Aggressive traders can buy Nifty Bank in the 47,125-47,250 range with a strict stop loss at 46,950 for targets of 47,400, 47,475, 47,600, 47,725, 47,775 and 47,875

F&O ban update

  • New in ban: Vodafone Idea
  • Out of ban: India Cements, Exide Industries
  • Already in ban: Bandhan Bank, SAIL, GNFC, Metropolis, PEL, Balrampur Chini, Hindustan Copper, NALCO, ZEEL

Stocks of the day

Buy ICICI Lombard futures with a stop loss at Rs 1,633 for targets of Rs 1,680 and Rs 1,695

  • Results better than estimates
  • Jefferies has maintained a 'buy' rating with a target of Rs 1,950

Sell Tata Communications futures with a stop loss at Rs 1,915 for targets of Rs 1,860, Rs 1,848 and Rs 1,838

  • Results below estimates
  • Weak operating performance
  • Margins down 1.5 per cent 

Buy Biocon futures with a stop loss at Rs 260 for targets of Rs 272, Rs 278 and Rs 283

  • The company has entered an exclusive licensing and supply agreement with Biomm
  • The company will sell its products in Brazil
  • The drug has a big market size of $3.7 billion in Brazil
  • Biocon expected to get $500 million sales in next two years

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