Anil Singhvi Market Strategy (May 27): Important levels to track in Nifty 50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index at 24,850-24,900 levels and a strong buy zone at 24,685-24,800 levels on Tuesday, May 27. For the Nifty Bank, the market wizard expects support at 55,300-55,400 levels and a strong buy zone at 55,000-55,200 levels.

How market guru Anil Singhvi sums up trade setup:

• Global: Neutral

• FII: Positive

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

• FII long positions at 35 per cent vs 33 per cent before Monday's session

• Nifty put-call ratio (PCR) at 1.06 vs 1.09

• Nifty Bank PCR at 0.89 vs 0.90

• Volatility index India VIX up 4 per cent at 18.02

The market wizard sees a higher zone at 25,075-25,125 levels and a profit-booking zone at 25,200-25,275 levels for the headline index.

For the banking index, he sees a higher zone at 55,700-55,875 levels and a profit-booking zone at 55,925-56,075 levels. ​

Are consistent FII inflows set to support Dalal Street?

• For the first time since May 5, FIIs and DIIs have been net buyers for two back-to-back sessions on Dalal Street
• This breaks the trend of one-day buying followed by one-day selling
• On Monday, FIIs made net purchases worth Rs 2,862 crore across cash, stocks and index futures
• DII inflows at Rs 1,746 crore
• Numbers may be small, but positive for the market

Who will benefit with just two days left to monthly F&O expiry?

• Traders have been awaiting the expiry day eagerly this month
• Good for both NSE and BSE; slightly more positive for BSE
• There is a growing possibility that NSE will keep Thursday and BSE Tuesday as their respective expiry days
• The possibility of competition from any other exchange is now out of the way

IndiGo Block Deal—What to do?

• Promoter to sell nearly 10 per cent stake
• More supply expected even after this block deal
• Avoid buying for the short term
• Those holding the stock should stay invested for now

PG Electro Block deal—what to do?

• Block deal could offer a buying opportunity
• Despite good results, the stock hasn't rallied much due to the block deal

Sagility OFS—What to do?

• Fundamentally strong company
• A favourite among FIIs
• Can consider buying in the OFS

What will give the first breakout—Nifty or Nifty Bank?

• Both are near crucial levels and look fully ready for breakouts
• Both gauges attempted breakouts on Monday but then slipped slightly
• Nifty above 25,125 and Nifty Bank above 56,100 can lead to strong breakouts

Best entry levels for Tuesday’s trade?

• Good buying zone for Nifty at 24,800–24,900
• Good buying zone for Nifty Bank at 55,200–55,400
• For breakout buying, enter if Nifty crosses 25,125 and Nifty Bank crosses 55,700; buy from an intraday perspective

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

For existing long positions:

• Nifty intraday and closing stop loss at 24,850

• Nifty Bank intraday and closing stop loss at 55,300

For existing short positions:

• Nifty intraday and closing stop loss at 25,125

• NiftyBank intraday stop loss at 55,900 and closing stop loss at 55,650

For new positions in Nifty50:

• The best range to buy Nifty is 24,800-24,900 with a stop loss at 24,700 for targets of 24,950, 25,000, 25,070, 25,115, 25,200 and 25,235

• Sell Nifty only if it breaks below 24,850 with a stop loss at 25,000 for targets of 24,800, 24,765, 24,735, 24,685, 24,665 and 24,615

For new positions in Nifty Bank:

• Aggressive traders can buy Nifty Bank in the 55,200-55,400 range with a strict stop loss at 55,000 for targets of 55,475, 55,575, 55,675, 55,875, 55,925 and 56,075

• Aggressive traders can sell Nifty Bank in the 55,875-56,075 range with a strict stop loss at 56,150 for targets of 55,700, 55,575, 55,500, 55,425, 55,300 and 55,200

Stocks in F&O ban

• Out of ban: Dixon Tech
• Already in ban: Chambal Fertilisers, Hindustan Copper, Titagarh, RBL Bank, Manappuram Finance
• New in ban: None

RESULTS REVIEWS | Aurobindo Pharma, Jindal Drilling

Aurobindo Pharma

• Mixed results
• Conference call set to begin around 8:30-9 am
• Investors should wait for the concall for more clarity
• Futures have support at Rs 1,155 and Rs 1,147
• Higher levels expected at Rs 1,192 and Rs 1,210

Jindal Drilling

• Strong operational performance
• Margin up at 35.5 per cent from 25 per cent
• The company has come into profit from loss
• Buy Jindal Drilling shares for targets of Rs 725, Rs 735 and Rs 750 with a stop loss at Rs 700

STOCKS OF THE DAY | Varun Beverages, Motherson, Bayer Corp, Akums Drugs and Pharmaceuticals

Buy Varun Beverages futures for targets of Rs 487, Rs 494 and Rs 500 with a stop loss at Rs 471

• The stock is in a strong uptrend
• Goldman Sachs has initiated coverage with a 'buy' rating and a target of Rs 600

Buy Motherson futures for targets of Rs 153, Rs 157 and Rs 159 with a stop loss at Rs 148

• On May 29, the company is set to consider bonus issue

Buy Bayer Crop for targets of Rs 5,200, Rs 5,350 and Rs 5,450 with a stop loss at Rs 5,020

• Strong results
• EBITDA up 75 per cent
• Margins improved from 12.3 per cent to 16.3 per cent

Buy Akums Drugs and Pharmaceuticals shares for targets of Rs 590, Rs 595 and Rs 605 with a stop loss at Rs 572

• Outstanding results
• EBITDA and margin very strong
• The company has logged a Rs 148 crore profit vs a loss of Rs 41 crore a year ago