Share Market Strategy: Nifty50 strong buy zone at 23,000-23,150, says Anil Singhvi as Trump announces 10-day ceasefire

Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index emerging at 23,300-23,465 levels and a strong buy zone at 23,000-23,150 levels on Wednesday, April 8.

The market wizard sees support for the Nifty Bank coming in at 23,575-24,650 and 23,775-23,865 levels, and a strong sell area at 24,000-24,125 levels.

Market participants await the outcome of the RBI governor-led Monetary Policy Committee's April review, due at 10 am. Globally, there's a sigh of relief with the US and Iran agreeing to cease fire for 10 days in what experts are describing as the first sign of de-escalation in the conflict that began on February 28.

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How market wizard sums up trade setup

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

• FII long positions at 18.44 per cent vs 17.55 per cent before Tuesday's trading session

• Nifty put-call ratio (PCR) at 1.13 vs 1.22

• Nifty Bank PCR unchanged at 0.85

For the headline index, the market wizard expects a higher zone at 23,575-24,650 and 23,775-23,865 levels, and a strong sell area at 24,000-24,125 levels.

For the banking index, he expects a higher zone in the 53,450-53,700 and 54,100-54,400 ranges, and strong sell zone at 54,675-54,875 and 55,000-55,275 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 with a stop loss at 23,075 for targets of 22,850, 22,815, 22,715, 22,680, 22,625 and 22,525

• Aggressive traders can buy Nifty in the 22,625-22,800 range with a strict stop loss at 22,475 for targets of 22,850, 22,915, 22,965, 23,000, 23,065 and 23,150

For new positions in Nifty Bank:

• Sell Nifty with a stop loss at 23,075 for targets of 22,850, 22,815, 22,715, 22,680, 22,625 and 22,525

• Aggressive traders can buy Nifty in the 22,625-22,800 range with a strict stop loss at 22,475 for targets of 22,850, 22,915, 22,965, 23,000, 23,065 and 23,150

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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