Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support emerging at 22,325-22,375 levels and a strong buy zone at 22,175-22,250 levels for the headline Nifty50 index on Thursday, April 4.

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For the Nifty Bank, he expects support to come in at 47,275-47,425 levels and a strong buy zone at 47,025-47,175 levels.

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

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

He expects a higher zone for the headline index at 22,500-22,525 levels and a "blue sky zone" above 22,550. 

For the banking index, Singhvi expects a higher zone at 47,825-47,925 levels and a strong sell zone at 47,975-48,150 levels. 

ANIL SINGHVI MARKET STRATEGY  

  • FII index longs at 44 per cent vs 47 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.95 vs 1.0 per cent
  • Nifty Bank PCR at 1.04 vs 0.93
  • Volatility index India VIX down two per cent at 11.37

The market wizard expects strong support for the Nifty50 in the 22,300-22,400 zone ahead of the expiration of weekly derivatives due by the end of the day, amid strong buying in crude oil, metal and gold, and points out the emergence of strong selling by FIIs. He expects strong a move in the headline index once it settles above 22,550, following buying at lower levels over the past two days. 

Singhvi believes midcap and smallcap stocks are relatively better positioned amid some profit-taking in their largecap counterparts. 

He suggests investors buy stocks of companies with strong quarterly business updates.

For existing long positions:

  • Nifty intraday and closing stop loss at 22,300
  • Nifty Bank intraday and closing stop loss at 47,250

For existing short positions:

  • Nifty intraday and closing stop loss at 22,550
  • Nifty Bank intraday and closing stop loss at 47750

For new positions in Nifty:

  • The best range to buy Nifty is 22,325-22,400 with a strict stop loss at 22,250 for targets of 22,425, 22,450, 22,500 and 22,525
  • Above 22,550, one may hold their long positions with a trailing stop loss 
  • Aggressive traders can sell Nifty in the 22,500-22,550 range with a strict stop loss at 22,600 for targets of 22,450, 22,425, 22,375, 22,350 and 22,325

For new positions in Nifty Bank:

  • Aggressive traders can buy Nifty Bank in the 47,275-47,425 range with a strict stop loss at 47,100 for targets of 47,550, 47,625, 47,700, 47,825, 47,925 and 47,975
  • Aggressive traders can sell Nifty Bank in the 47,825-47,975 range with a strict stop loss at 48,175 for targets of 47,725, 47,650, 47,575, 47,450, 47,375 and 47,275

Anil Singhvi's favourite sectors now

The market guru likes two sectors at the moment: power and metal. Here's what he makes of both: 

Power

  • Power stocks likely to become more 'powerful'
  • Strong demand
  • Valuations attractive
  • Power stocks likely to be the first to jump in case of a market recovery
  • PFC, REC set to rise the most from the basket

Metal

  • Strong gains in international metal prices
  • Support from the return of Chinese demand 
  • Minor weakness in the dollar also likely to aid rates
  • Metal stock valuations reasonable

F&O ban update

  • New in ban: SAIL, Zee Entertainment Enterprises 
  • Already in ban: Hindustan Copper
  • Out of ban: None

Stocks of the day

Buy Coforge futures with a stop loss at Rs 5,630 for targets of Rs 5,790, Rs 5,850 and Rs 5,940

  • JP Morgan has initiated coverage with a target of Rs 7,000
  • Stock ready to blast from oversold levels

Buy RBL Bank futures with a stop loss at Rs 249 for targets of Rs 258, Rs 263 and Rs 267

  • Strong quarterly update; impressive 22 per cent deposit growth 

Buy L&T Finance futures with a stop loss at Rs 169 for targets of Rs 174 and Rs 177

  • Strong quarterly update

Buy Manappuram futures with a stop loss at Rs 190 for targets of Rs 199, Rs 202 and Rs 208

  • Gold prices at a lifetime high
  • Better business prospects
  • Improvement in NPA recovery
  • Subsidiary Asirvad Microfinance's IPO expected soon

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