Anil Singhvi strategy July 27: Important levels to track in Nifty, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the Nifty index coming in at 19,700-19,750 levels and a strong buy zone at 19,625-19,675 levels on Thursday, July 27. For the Nifty Bank, he expects support at 45,800-45,925 levels and a strong buy zone at 45,625-45,700 levels.

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

• Global: Positive

• FII: Positive

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

Singhvi sees a higher zone in the Nifty coming in at 19,850-19,885 levels and a profit-booking zone at 19,975-20,000 levels. For the banking index, he sees a higher zone at 46,200-46,350 levels and a "blue sky zone" above 46,400.

ANIL SINGHVI MARKET STRATEGY

27th July Strategy: आज की स्ट्रैटेजी#FirstTrade #MarketStrategy #TradingTips #Nifty #BankNifty

Zee Business : https://t.co/L7dFihktFe pic.twitter.com/8yS1ah9rpm

— CA Anil Singhvi Zee Business (@AnilSinghvi_) July 27, 2023

Why are the markets happy with the Fed's latest policy?

• Fears of a recession in the US now behind
• It is not necessary for the Fed to raise rates in September itself
• The Fed will look at data to decide 
• It will take the Fed two years to bring inflation within its target of two per cent

Four key factors that support buying:

• Global markets move higher after the Fed meeting
• Strong buying on Dalal Street by FIIs as well as DIIs
• Short-covering likely on the monthly expiry day
• Strong results from pharma and FMCG sectors

Singhvi expects the market to scale new record highs. He points out that pharma and FMCG results have been strong but IT earnings have been weak.

• FII index longs at 67 per cent vs 66 per cent the previous day

• Nifty put-call ratio (PCR) light, at 0.87 vs 0.81

• Nifty Bank PCR light, at 0.93 vs 0.77

• Fear index India VIX up two per cent at 10.46

For existing long positions:

• Nifty intraday and closing stop loss at 19,600

• Nifty Bank intraday and closing stop loss at 45,800

For existing short positions:

• Nifty intraday and closing stop loss at 19,850

• Nifty Bank intraday and closing stop loss at 46,200

For new positions in Nifty:

• Buy Nifty with a stop loss at 19,700 for targets of 19,825, 19,850, 19,885 and 19,975

• Aggressive traders can sell Nifty near 19,975 with a strict stop loss at 20,025 for targets of 19,900, 19,850, 19,825 and 19,775

For new positions in Nifty Bank:

• Buy Nifty Bank with a stop loss at 45,800 for targets of 46,150, 46,190, 46,250, 46,350; above 46,400, the banking index in a blue sky zone

• Aggressive traders can sell Nifty Bank in the 46,250-46,375 range with a strict stop loss at 46,500 for targets of 46,200, 46,150, 46,100, 46,000, 45,925 and 45,850

Stocks in F&O ban:

• Already in ban: Sun TV, RBL Bank, Delta Corp

• Out of ban: Canara Bank, Indiabulls Housing Finance

• New in ban: None

Stocks of the day: 

Sell Tech Mahindra futures with a stop loss at Rs 1,150 for targets of Rs 1,105 and Rs 1,080

• Worst results in the IT sector
• Revenue, margin and profit much below estimates
• Deal bookings lowest in 12 quarters

Buy Colgate futures with a stop loss at Rs 1,870 for targets of Rs 1,907 and Rs 1,920

• Strong performance on all parameters
• Domestic sales growth at 12.3 per cent
• Strong management outlook 

Buy Cipla futures with a stop loss at Rs 1,065 for targets of Rs 1,100 and Rs 1,112

• Excellent results
• Strong management commentary

Results review:

Axis Bank

• Weakest results in the private banking sector
• Operationally weak; provisions and slippages increased
• Numbers below estimates on all parameters
• But a lot of shorts in the last week

Tata Consumer Products

• In-line results
• Long positions created before the results
• Stock may see some profit-booking

Dr Reddy’s

• Strong performance on all parameters
• Book profit and exit from stock if runs up 3-5%

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