Share Market Strategy: Nifty 50 strong support at 22,525-22,675, says Anil Singhvi

Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index emerging in the 22,715-22,850 levels and a stronger support area at 22,525-22,675 levels on Tuesday, April 7.

The market wizard sees support for the Nifty Bank coming in at 52,025-52,275 and 51,550-51,825 levels, and a stronger support area at 51,125-51,450 levels.

What to make of Donald Trump's April 6 speech?

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Is it a positive, negative or neutral signal for Dalal Street?

• Trump’s speech increased both disappointment and confusion
• He repeated the same old rhetoric about destroying Iran one way or another
• Markets are now waiting for the final deadline at 5:30 am Wednesday (India time)
• Trump says he wants to end the war but he has not been able to do so
• This is why global markets did not fall sharply
• Markets are gradually reacting less to Trump’s threats
• They are likely to respond more to statements coming in from Iran

​ALSO READ: Anil Singhvi breaks down Donald Trump speech, flags market risks | Editor's Take

How market wizard sums up trade setup

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

• FII long positions at 17.55 per cent vs 16.84 per cent before Monday's trading session

• Nifty put-call ratio (PCR) at 1.22 vs 1.09

• Nifty Bank PCR at 0.85 vs 0.84

For the headline index, the market wizard expects a higher zone at 23,000-23,150 levels and a strong sell zone at 23,250-23,400 levels.

For the banking index, he expects a higher zone in the 52,700-52,950 and 53,025-53,300 bands, and a profit-booking area at 53,450-53,700 levels.

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

For existing long positions:

• Nifty intraday stop loss at 22,775 and closing stop loss at 22,675
• Nifty Bank intraday stop loss at 52,000 and closing stop loss at 51,450

For existing short positions:

• Nifty intraday and closing stop loss at 23,075
• Nifty Bank intraday and closing stop loss at 53,000

For new positions in Nifty50:

• Sell Nifty: SL 23075 Tgt 22850, 22815, 22715, 22680, 22625, 22525

• Aggressive Traders Buy Nifty in 22625-22800 range: Strict SL 22475 Tgt 22850, 22915, 22965, 23000, 23065, 23150

For new positions in Nifty Bank:

• Sell Nifty: SL 23075 Tgt 22850, 22815, 22715, 22680, 22625, 22525

• Aggressive Traders Buy Nifty in 22625-22800 range: Strict SL 22475 Tgt 22850, 22915, 22965, 23000, 23065, 23150

Futures & options (F&O) ban

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

Is Nifty50 approaching oversold levels?

• Fear index India VIX closed at 27.89 on March 30 -- its highest in four years (since March 8, 2022)
• The volatility gauge's last peak was right after the Lok Sabha election results on June 4, 2024, when it fell 5.9 per cent
• From there, Nifty rallied 2,400 points, or 11 per cent, within a month
• Nifty50 is considered oversold when key technical indicator RSI falls below the 30 mark
• On March 9, RSI dropped to 28
• Since 2022, Nifty50 has entered oversold territory -- with RSI below 30 -- a total of seven times
• In six out of those instances, a strong recovery followed
• Only on October 25, 2024, when RSI hit 28, no recovery was seen
• In those six instances, gains ranged from 6.7 per cent to 18 per cent within three days-two months
• This time, Nifty declined 6.4 per cent to reach 22,182 by April 2
• In between, from the March 23 low of 22,471, Nifty rose 995 points, or 4.4 per cent, in two days
• From the April 2 low of 22,182, it gained 816 points, or 3.7 per cent till Monday

Is there any sign that weakness in Nifty Bank is fading?

• The banking index's 51,625-52,275 range was a major resistance zone
• On March 30, Nifty Bank remained stuck in this range following a gap-down opening
• A close above 52,300 on Monday gave the first signal of easing weakness
• A sustained close above the 52,300 mark on Tuesday will confirm a trend reversal

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