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Anil Singhvi explains trading plan for weak markets; check key levels of Nifty50 and Bank Nifty

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  Published in Stocks and Investing on Thursday, October 30th 2025 at 1:09 GMT by Zee Business
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Anil Singhvi’s Trading Blueprint for Weak Markets: A Deep Dive into Key Nifty50 and Bank Nifty Levels

The recent market volatility has prompted many investors to reassess their strategies. In a timely interview on ZeeBiz, seasoned portfolio manager Anil Singhvi laid out a concise, pragmatic trading plan tailored for the current weak‑market environment. His approach hinges on clear technical thresholds, disciplined risk management, and a keen awareness of macro‑economic undercurrents that influence the Indian equity index and its flagship sector.

Setting the Stage: Market Context

Singhvi began by painting a picture of the broader market sentiment. The Nifty 50, the benchmark index that tracks 50 of the largest publicly traded companies in India, has been grappling with a sideways trend since early June. A series of corporate earnings reports, coupled with global macro‑economic uncertainty, has kept the index oscillating around a critical support zone near ₹19,200. Meanwhile, Bank Nifty – a proxy for the Indian banking sector – has mirrored this behavior, with its own set of dynamic support and resistance levels that reflect the delicate balance between liquidity conditions and interest‑rate expectations.

He noted that the Reserve Bank of India’s (RBI) recent decisions on policy rates, the outlook on the inflation trajectory, and international capital flows are all playing significant roles in shaping the direction of these indices. Understanding these macro drivers is essential before applying any technical playbook.

The Core of Singhvi’s Trading Plan

Singhvi’s plan can be broken down into three primary components:

1. Entry Criteria Based on Key Levels
   - Nifty 50: The primary support lies at ₹19,200. If the index dips below this point, it signals a potential downside move. Conversely, a breakout above ₹19,800 (the upper resistance) can be a bullish indicator.
   - Bank Nifty: The key support is around ₹4,200, while resistance sits near ₹4,400. Singhvi stresses that a break below the support could spell a short‑term pullback, whereas a breach of the resistance could create a short‑term rally.
   - The plan calls for entering trades when these levels are breached with a clear confirmation – such as a volume spike or a change in trend indicator – to avoid false signals.

2. Position Sizing and Risk Controls
   Singhvi emphasizes that every trade should risk no more than 1–2 % of the overall portfolio. For a typical trader with ₹10 Lakh, this translates to a maximum position size of ₹100–₹200 K per trade. He recommends using stop‑loss orders just below the support level for longs and just above the resistance for shorts, thereby limiting potential losses.

3. Exit Strategy and Profit Targets
   The strategy sets a conservative risk‑reward ratio of at least 1:2. Thus, if a long entry is made at ₹19,300, the profit target would be set around ₹19,700. For shorts, a sell at ₹19,500 with a target of ₹19,100 is typical. These levels are chosen to align with the natural swing range of the index. Singhvi also advises that traders should trail stops to lock in gains as the market moves in their favor.

Key Technical Levels to Watch

In the interview, Singhvi highlighted several technical levels that traders should monitor closely:

• Nifty 50
  - Support: ₹19,200 (immediate)
  - Resistance: ₹19,800 (short‑term)
  - Intermediate: ₹19,500 (mid‑point)

• Bank Nifty
  - Support: ₹4,200
  - Resistance: ₹4,400
  - Intermediate: ₹4,300

These levels are derived from recent price action and historical price consolidation zones. Singhvi cautions that they are not set in stone; traders should adapt them based on real‑time market developments and incorporate additional tools like moving averages or RSI to confirm signals.

Macro Factors Influencing the Plan

The interview also dives into several macro‑economic elements that can amplify or dampen the effectiveness of the trading plan:

• RBI Policy Outlook: The RBI’s stance on interest rates directly impacts the banking sector, thereby influencing Bank Nifty. A tightening or easing cycle can shift the support and resistance levels.

• Inflation Trends: Rising inflation often leads to higher rates, which may pressure both indices. Conversely, a controlled inflation environment can provide a bullish backdrop.

• Global Sentiment: Capital outflows or inflows from global markets can affect the Indian rupee’s strength, influencing the stock indices through export‑dependent companies and foreign‑invested funds.

• Corporate Earnings: Quarterly earnings releases from major constituents can cause sudden shifts in index levels. Traders should stay updated on earnings calendars.

Final Thoughts

Anil Singhvi’s framework offers a pragmatic, disciplined approach for navigating weak markets. By anchoring trades to clearly defined technical levels, maintaining tight risk controls, and staying attuned to macro‑economic signals, investors can navigate volatility with greater confidence. The strategy is especially useful for active traders who need actionable entry and exit points in an uncertain environment.

For those interested in a deeper exploration of Bank Nifty’s dynamics, a supplementary article on ZeeBiz titled “Bank Nifty: Current Trends & Future Outlook” provides further context on sector‑specific risks and opportunities. Additionally, the RBI’s recent policy statement, published on the Reserve Bank of India’s website, offers valuable insights into the monetary environment that shapes the indices.

In summary, Singhvi’s trading plan underscores the importance of marrying technical precision with macro‑economic awareness – a balanced approach that can help investors protect capital and capture upside even when markets are flat or trending weakly.