Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index at 24,500-24,600 levels and a stronger support zone at 24,365-24,450 levels on Wednesday, August 6, with the RBI scheduled to announce key decisions at the August MPC review at 10 am. For the Nifty Bank, the market wizard expects support at 54,950-55,150 levels and a strong support area at 54,575-54,700 levels.
How market guru Anil Singhvi sums up trade setup:
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Global: Negative
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FII: Negative
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DII: Positive
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F&O: Neutral
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Sentiment: Negative
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Trend: Neutral
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FII long positions at 8 per cent vs 9 per cent before Tuesday’s session
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Nifty put-call ratio (PCR) at 0.83 vs 0.93
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Nifty Bank PCR at 0.82 vs 0.89
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Volatility index India VIX down 2 per cent at 11.71
The market wizard expects a higher zone at 24,725-24,800 levels and a strong sell zone at 24,825-24,900 levels for the headline index.
For the banking index, he expects a higher zone at 55,550-55,750 levels and a profit-booking zone at 55,850-56,000 levels.
What to make of key data points?
- Nifty Bank has hit a one-month low of 55,202, closing below 56,000 for four straight sessions
- From the June 13 low of 55,149, Nifty Bank gained 4.5 per cent to hit a high of 57,628 on July 2
FII and DII trends
- FIIs have sold for 12 sessions in a row–their longest selling spree since March 17
- On July 8, FIIs recorded their smallest sell figure since March 17, at Rs 22 crore
- DIIs have bought stocks for 22 straight sessions–their longest buying streak since June 19
- FIIs’ index futures long positions are down at 8.42 per cent–the lowest since March 2023
- This marks the first time since 2012 that FII long positions stayed below 10 per cent for four consecutive days
What global markets signal
- Dollar Index below 99 for a fourth straight day
- US bond yield under 4.20 per cent–its lowest in three months
- Crude oil at two-week lows, below $68/barrel
Domestic signals
- Gold at a fresh high of Rs 1,01,579/10 grams
- Rupee is just 20 paise away from its record low of 88
How much tariff will Donald Trump raise on India?
- Nobody really knows what Trump will say or do
- Beyond a point, hiking tariffs serves no purpose
- Once tariffs cross 25-30 per cent, exports become unviable
- Heavy tariffs will only serve Trump’s ego
- Whether it’s 25 per cent or 250 per cent, the impact is the same: It will discourage exports
How much can Trump’s new threat hurt Dalal Street?
- It could dampen sentiment slightly
- However, the US, India, and other countries have started to ignore Trump
- Pharma stocks could take a hit on renewed tariff threats
- Though a 250 per cent tariff on pharma is near-impossible in reality
- Tariff threats on semiconductors and chips could hurt auto and auto ancillary stocks
Should you buy or sell banks ahead of RBI policy?
- Nifty Bank has been weak for five straight sessions
- It’s now near a critical support at 55,150–this is the make-or-break level for now
- Direction will be clearer post-policy
- Below 54,950, one can expect fresh weakness in the market
- Above 55,750, strength may return on Dalal Street
Key levels to watch out for in Nifty50 and Nifty Bank
- Nifty strong support: 24,450-24,550
- Nifty upper range: 24,765-24,900
ANIL SINGHVI MARKET STRATEGY | How to trade Nifty Bank and Nifty50?
For existing long positions:
For existing short positions:
For new positions in Nifty50:
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Aggressive Traders Sell Nifty in 24735-24850 range: Strict SL 25000 Tgt 24650, 24600, 24565, 24535, 24500, 24450
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Aggressive Traders Buy Nifty in 24450-24550 range: Strict SL 24350 Tgt 24600, 24635, 24675, 24725, 24775, 24850
For new positions in Nifty Bank:
- Aggressive Traders Sell Bank Nifty in 55750-55950 range: Strict SL 56100 Tgt 55650, 55550, 55450, 55375, 55200, 55150, 55000
- Aggressive Traders Buy Bank Nifty only if crosses and sustains above 55650: Strict SL 55350 Tgt 55750, 55850, 55950, 56000, 56075, 56150
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