Market Guru's Strategy: How Anil Singhvi suggests you trade Nifty50 and Nifty Bank—Key levels to chase and avoid

Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index emerging at 23,700-23,900 levels on Tuesday, March 10, after hopes of an end to the Middle East conflict drove a bounceback on Wall Street.

The market wizard sees support for the Nifty Bank coming in at 55,275-55,550 levels.

How market guru Anil Singhvi sums up the trade setup:

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

• FII long positions at 12.35 per cent vs 12.91 per cent before Monday's trade

• Nifty put-call ratio (PCR) at 0.99 vs 0.83

• Nifty Bank PCR at 0.78 vs 0.81

The market wizard expects a higher zone to emerge at 24,300-24,400 levels in the Nifty50, followed by a strong sell zone at 24,425-24,525 levels.

He expects a higher zone at 56,700-56,925 and 57,000-57,200 levels in the banking index, followed by a strong sell zone at 57,600-57,800 levels.

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

For existing long positions:

• Nifty intraday stop loss at 23,700 and closing stop loss at 24,000
• Nifty Bank intraday stop loss at 55,150 and closing stop loss at 56,000

For existing short positions:

• Nifty intraday and stop loss at 24,100
• Nifty Bank intraday and closing stop loss at 56,300

For new positions in Nifty50:

• Buy Nifty with a stop loss at 23,700 for targets of 24,300, 24,335, 24,365, 24,400, 24,450 and 24,500

• Aggressive traders can sell Nifty in the 24,300-24,500 range with a strict stop loss at 24,600 for targets of 24,175, 24,125, 24,075, 24,025, 23,800 and 23,700

For new positions in Nifty Bank:

• Buy Nifty Bank with a strict stop loss at 55,250 for targets of 56,500, 56,700, 57,000, 57,200, 57,700 and 57,775

• Aggressive traders can sell Nifty Bank in the 57,600-57,800 range with a strict stop loss at 58,000 for targets of 57,200, 57,050, 56,800, 56,500, 56,275 and 56,050

Futures & options (F&O) ban

• Already in ban: SAIL, Sammaan Capital
• New in ban: None
• Out of ban: None

Key market signals

What's causing high volatility in crude oil?

• Benchmark crude oil rates surged 25 per cent intraday trade to $119.5/bbl on Monday
• A Financial Times report triggered sharp selling in crude
• G7 finance ministers may release oil from surplus reserves
• After the report, crude fell to around $100/bbl
• Late-night comments by Donald Trump, suggesting that the Iran war may end soon, accelerated the fall in crude oil
• Trump indicated that the US is preparing to take control of the Strait of Hormuz
• After these developments, crude dropped to around $90/bbl
• Price action driven more by news than fundamentals
• Even though crude has fallen, volatility fears remain
• Iran’s foreign minister has still issued threats
• G7 countries meeting today to discuss using emergency crude reserves

Wall Street rallies

• From the day’s lows, Dow jumped 1,150 points; Nasdaq rose 700 points
• Major Asian markets surging on Tuesday
• US markets rallied on signals that the war may end soon
• Falling crude reduced inflation concerns
• Dollar index rally paused

What is the mood like on Dalal Street?

• Monday's weakness was not due to panic; the fall was much less severe than in other Asian markets
• Markets recovered well from lower levels and closed near the day’s high
• RIL and the IT index supported the recovery
• Fresh weakness will emerge only if Monday’s low is breached
• Short-covering may intensify if the market moves above Monday’s high