Anil Singhvi's Market Strategy May 30: Banks, NBFC and tyres set to be negative

On Tuesday, BSE Sensex and NSE Nifty closed lower by 216 points at 34,949 and by 55 points at 10,633 respectively. Amid neutral foreign institutional investors (FII), Futures and Options (F&O), negative global and positive Domestic Institutional Investors (DIIs) cues, the short term trend of the Indian market will remain neutral today. However, when it comes to sentiments, then it would be advisable if traders are cautious while investing in the market today. 

Market Strategy May 30:

Anil Singhvi, Managing Editor, Zee Business, avers that 10,600 and 26,200 are going to be the deciding levels for Nifty and BankNifty respectively. In case of Nifty, trade range is going to be between 10535-10650 with two next support levels at 10,500 and 10,525. The profit booking level for investors is going to stand at 10,650. The mark of 10,500 in Nifty will be critical and any fall from here may bring a huge fall in the market. 

Similarly, 26,000 is going to be an important support range in BankNifty and any fall below this mark will lead to a fall of 200-300 points. 

Singhvi suggests that the traders should reduce their long/buying positions on Nifty and BankNifty if it closes below the mark of 10,500 and 26,000 respectively. 

Traders are advised to sell Nifty if it crosses the mark of 10,500 with a stop loss at 10,650 and target of 10,535-10,500. If traders are interested in buying Nifty, then they are advised to get in if it nears 10,500 with a stop loss 10,475 and target of 10,535. 

Similarly, the traders who want to sell their BankNifty positions are advised to sell it with a stop loss of 26,300 and target of 26,050 and 25,800. 

The put-call ratio (PCR) for today stands at 1.40 and volatility index (VIX) is 13.07. 

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Banks, NBFC and Tyres are going to be negative and investors are advised not to get involved in positional trade in these sectors. 

Future and Option (F&O) traders 

For Future and Option (F&O) traders the good news is that Reliance Communications and Jain Irrigation are out of the ban imposed on them and traders can invest in these two companies now. On the other hand, Just Dial and JP Associates have entered the list of banned companies and this means that you can't take a long position in these two companies. Other companies in the banned F&O list are DHFL, Jet Airways, IDBI and Balrampur Chini.