Anil Singhvi Market Strategy (May 12): Important levels to track in Nifty 50, Nifty Bank today amid Indo-Pak ceasefire

Anil Singhvi Market Strategy: With all eyes on scheduled talks at noon between the Indian and Pakistani DGMOs to review a fragile ceasefire, Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index at 24,150-24,275 levels and a strong buy zone at 23,950-24,075 levels on Monday, May 12. 

For the Nifty Bank, Singhvi expects support at 53,925-54,100 levels and a strong buy zone at 53,500-53,600 levels. 

Read on to learn more about the market wizard's throughts on Dalal Street for the day.

How market guru Anil Singhvi sums up trade setup: 

• Global: Positive

• FII: Negative

• DII: Positive

• F&O: Positive

• Sentiment: Positive

• Trend: Positive

• FII long positions at 48 per cent vs 52 per cent before Friday's session

• Nifty put-call ratio (PCR) at 0.94 vs 1.08

• Nifty Bank PCR at 0.77 vs 0.84

• Volatility index India VIX up 3.0 per cent at 21.63

The market wizard sees a higher zone at 24,425-24,575 levels and a profit-booking zone at 24,650-24,750 levels for the headline index.

For the banking index, he sees a higher zone at 54,375-54,600 levels and a profit-booking zone at 54,725-54,975 levels. 

Is fear of war gone from Dalal Street for good?

• One can never trust a neighbour like Pakistan
• Everyone is well aware why Pakistan proposed ceasefire
• Ceasefire violations are factored in
• Dalal Street will fall only when there's a war-like situation again
• A lesson learned with a pinch of salt: Indians should consider avoiding travel to Turkey and Azerbaijan

How much can Dalal Street expect the market to surge post-ceasefire?

• Ceasefire came about sooner than expected 
• Ceasefire is quite positive for Dalal Street
• This was the only concern that was keeping Dalal Street sideways for the past two weeks
• It it weren't for war fears, Nifty50 would have been above the 25,000 mark
• Nifty50 will try to approach 25,000 this week

Should you buy even if Nifty50 stages a 500-point gap-up opening?

• If at such a strong gap-up start to the day, two types of market participants are expected to buy: 
  • Traders will rush to cover their shorts
  • Investors awaiting the end of the war-like situation as well as FIIs will buy 
• One may consider Friday's FII outflows as profit-booking amid war fears
• DII inflows and April mutual fund data are encouraging
• The next target for the Nifty50 is in the 24,650-24,850 range
• No return of Indo-Pak tensions will take Nifty50 and Nifty Bank past 25,000 and 56,000 levels, respectively 

ANIL SINGHVI MARKET STRATEGY | How to trade Nifty Bank and Nifty50?

For existing long positions: 

• Nifty intraday and closing stop loss at 24,000

• Nifty Bank intraday and closing stop loss at 53,450

For existing short positions:

• Nifty intraday stop loss at 24,600 and closing stop loss at 24,475

• Nifty Bank intraday stop loss at 54,100 and closing stop loss at 54,625

For new positions in Nifty50:

• Buy Nifty for targets of 24,400, 24,450, 24,500, 24,575, 24,650, 24,700 and 24,750 with a stop loss at 24,000 

• Aggressive traders can sell Nifty near 24,600 with a strict stop loss at 24,675 for targets of 24,525, 24,450, 24,400, 24,365, 24,335 and 24,300

For new positions in Nifty Bank:

• Buy Nifty Bank for targets of 54,175, 54,275, 54,375, 54,600, 54,675, 54,775 and 54,925 with a stop loss at 53,450 

• Aggressive traders can sell Nifty Bank in the 54,775-54,975 range for targets of 54,625, 54,375, 54,275, 54,175, 54,100 and 53,925 with a strict stop loss at 55,125 

Stocks in F&O ban

• Already in ban: CDSL, Manppuram Finance, RBL Bank
• New in ban: None
• Out of ban: None

STOCKS OF THE DAY: Navin Fluorine, IndiGo, Coforge, Persistent

Buy Navin Fluorine shares in the spot market for targets of Rs 4,670, Rs 4,750 and Rs 4,790 with a stop loss at Rs 4,550 

• Results impressive 
• Strong operational performance  

Buy Indigo futures for targets of Rs 5,190, Rs 5,240 and Rs 5,290 with a stop loss at Rs 5,050 

• Ceasefire positive for aviation stocks 
• Fundamentals very strong
• Now short covering expected

Buy Coforge futures for targets of Rs 7,790, Rs 7,870 and Rs 7,950 with a stop loss at Rs 7,580; buy Persistent Systems futures for targets of Rs 5,550, Rs 5,650 and Rs 5,800 with a stop loss at Rs 5,355 

• IT stocks to rebound on USA-China trade deal

Buy SBI futures for targets of Rs 790 and Rs 800 with a stop loss at Rs 755 

• SBI has sold a 13.2 per cent stake in Yes Bank for Rs 8,900 crore

Sell Aurobindo Pharma futures for targets of Rs 1,145, Rs 1,115 and Rs 1,100 with a stop loss at Rs 1,175 

• Tonight, US President Donald Trump will announce that pharma companies should reduce prices by 30-80 per cent
• Negative for Indian pharma companies

RESULTS REVIEWS

Dr Reddy’s Labs

• Results below expectations
• Weak operational performance
• Sell Dr Reddy’s futures for targets of Rs 1,130, Rs 1,110 and Rs 1,080 with a stop loss at Rs 1,185 

ABB 

• Result in line with expectations
• Order book and outlook very strong
• Buy ABB futures for targets of Rs 5,550, Rs 5,650 and Rs 5,700 with a stop loss at Rs 5,400 

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