Anil Singhvi's Strategy: Trading Nifty50, Nifty Bank? Here's what market guru wants you to know

Global: Neutral

FII: Negative

DII: Positive

F&O: Positive

Sentiment: Negative

Trend: Neutral

FII long positions at 19.37 per cent vs 22.01 per cent before Friday's session

Nifty put-call ratio (PCR) at 0.63 vs 0.83

PCR near oversold territory; short-covering expected from lower levels

Nifty Bank PCR at 0.92 vs 1.15

Volatility index India VIX up 13.5 per cent at 13.50

Here's how the market guru sums up the negative and positive cues on Dalal Street for the day.

Negatives

Heavy selling by FIIs Global markets weak AI-related fears dominatic globally Sharp selling in midcap and smallcap stocks has severely weakened sentiment The market is not responding to any positive news Any negative news is triggering aggressive FII selling New RBI regulations to put pressure on capital market stocks 

Positives

Strong buying by domestic funds providing support Nifty PCR at 0.64, near oversold levels Earnings season has ended, reducing the risk of major negative surprises

The market guru sees key support for the Nifty50 coming in at the Budget Day high of 25,440. A close below this level could deepen the decline in the index, with the next major support expected in the 25,850-26,100 range, he says.

Singhvi believes that in case of a recovery, levels of 25,850-26,000 will act as strong resistance for the index. He also says that Nifty Bank still cannot be considered weak, with very strong support placed near the 59,500 mark. 

Here's what the market guru says about the latest RBI circular, which has kept brokers on their toes:

RBI has made three major changes in rules related to banks funding brokers Intraday limits will now be allowed only for pay-in/settlement purposes They can no longer be used for margin requirements 100 per cent margin to now be required for bank guarantees related to proprietary trades; 50 per cent in cash and the remaining 50 per cent in collateral Due to the 100 percent margin requirement, borrowing from banks for the margin trading facility (MTF) will become difficult

How could this impact the market?

Futures trading volumes are certain to decline Smaller brokers will face serious funding challenges Brokers undertaking proprietary trades will now need to maintain higher capital F&O expiry-day volumes are likely to be significantly impacted

For existing long positions:

Nifty intraday and closing stop loss at 25,375

Nifty Bank intraday and closing stop loss at 60,000

For existing short positions:

Nifty intraday and closing stop loss at 26,650

Nifty Bank intraday stop loss at 60,500 and closing stop loss at 60,750

For new positions in Nifty50:

Aggressive traders can sell Nifty in the 25,625-25,775 range with a strict stop loss at 25,950 for targets of 25,575, 25,500, 25,450, 25,375, 25,325 and 25,275

Aggressive traders can buy Nifty in the 25,175-25,325 range with a strict stop loss at 25,075 for targets of 25,375, 25,450, 25,500, 25,575, 25,625 and 25,650

For new positions in Nifty Bank:

Aggressive traders can sell Nifty Bank in the 60,450-60,675 range with a strict stop loss at 60,800 for targets of 60,235, 60,075, 60,000, 59,800, 59,700 and 59,600

Aggressive traders can buy Nifty Bank in the 59,650-59,800 range with a strict stop loss at 59,500 for targets of 60,000, 60,075, 60,150, 60,235, 60,375, 60,450 and 60,525

ALSO READ: Apollo Hospitals, Torrent Power, Fortis Healthcare, Inox Wind, Hindustan Copper, other stocks worth tracking

Here's an update about the F&O segment:

Stocks already in ban: SAIL, Sammaan Capital Stocks new in ban: None Stocks out of ban: None

Here's what the market guru recommends on stocks in the news now:

Buy Mannappuram Futures for targets of Rs 310, Rs 314 and Rs 318 with a stop loss at Rs 297 

Bain Capital has received RBI nod to acquire 41.7 per cent stake in Manappuram Finance in a Rs 4,385-crore deal Sammaan Capital can also see a positive move on this approval

Buy Religare Enterprises shares for targets of Rs 248, Rs 251 and Rs 255 with a stop loss at Rs 240 

Religare demerged insurance business to unlock value Insurance business PAT at approximately Rs 800 crore, valued at approximately Rs 4,000 crore  Religare holds a 60 per cent stake valued at approx Rs 14,000 crore  Religare market cap is around Rs 8,000 crore 

Fortis Health

Buy Fortis Health futures for targets of Rs 928 and Rs 940 with a stop loss at Rs 900  Strong results on all parameters Hospital stocks reacting positively on results

Narayan Hrudayalaya 

Buy Narayan Hrudayalaya shares in the cash segment for targets of Rs 1,840, Rs 1,855 and Rs 1,870 with a stop loss at Rs 1,800  Outstanding performance on all parameters

Diamond Power & Infra 

Buy Diamond Power & Infra shares in the spot market for targets of Rs 135, Rs 137 and Rs 140 with a stop loss at Rs 129  Outstanding results Strong operational performance EBITDA up 345 per cent, profit up 693 per cent

Torrent Pharma 

Buy Torrent Pharma futures for targets of Rs 4,090, Rs 4,155 and Rs 4,190 with a stop loss at Rs 3,965  Stable results on all parameters 

NBCC 

Mixed results Profit up but operational performance weak  Futures have support at Rs 95 and Rs 97, with higher levels expected at Rs 100 and Rs 103

GMR Airports 

Strong operational performance Futures have support at Rs 92 with a higher level expected at Rs 97

KFin Tech 

Mixed results  Revenue better but weak margins Futures have support at Rs 950 with a higher level expected at Rs 983

Inox Wind 

Mixed results, slightly positive Not bullish on renewable energy stocks Book profit at higher levels Futures have support at Rs 102 with a higher level expected at Rs 110