In a recent market strategy update, Zee Business Managing Editor Anil Singhvi provided insights and recommendations for trading the Nifty50 and Nifty Bank indices. Singhvi's analysis takes into account global cues, FII/DII activity, and futures & options data to formulate a trading strategy for the day.

Market Overview

Singhvi's assessment of the market landscape is as follows:

He noted that FII long positions stood at 22% compared to 24% in the previous session. The Nifty put-call ratio (PCR) was 0.93 versus 0.84, while the Nifty Bank PCR was 0.78 versus 0.81. The volatility index, India VIX, was down 5% at 21.43.

Nifty50 Levels

For the Nifty50, Singhvi identified the following support and resistance levels:

Nifty Bank Levels

For the Nifty Bank, the key levels are:

Trading Strategy

Singhvi provided specific trading strategies for both indices:

Nifty50

Nifty Bank

F&O Ban Update

Market Recovery and Sectoral Outlook

Singhvi addressed the possibility of Nifty50 recovering to 23,800, a level seen before the tariff war. He emphasized the importance of the index surpassing the 22,800-23,000 range on a closing basis and China not exacerbating the situation. He suggested that IT stocks could see a jump due to positive Nasdaq performance and TCS results, potentially leading to short-covering moves. Similar moves are expected in metal and auto ancillary stocks. He is neutral to positive on Tata Motors. Banking, NBFC, power, oil companies, and FMCG stocks may underperform, with a neutral view on the pharma sector. Gold loan company stocks may experience recoveries from lower levels.

Caution and Recommendations

Singhvi advised traders to exercise caution, maintain light intraday positions, and use strict stop losses. He cautioned against holding overnight positions and writing options in the current market environment. Investors should limit their actions, stick around, and exit unfavorable positions close to cost. Fresh buying should be reserved for moments of panic, with profit-booking advised. He also suggested keeping light positions in tariff war-impacted stocks.

Stocks of the Day

Singhvi also shared his "Stocks of the Day" recommendations:

• Biocon: Buy futures for targets of Rs 310, Rs 316 and Rs 320 with a stop loss at Rs 298.
• Cipla: Buy futures for targets of Rs 1,450, Rs 1,465 and Rs 1,480 with a stop loss at Rs 1,395.

These recommendations are based on factors such as RBI's gold loan policy, global metal market trends, court rulings, and drug approvals.