Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index at 24,925-25,000 levels and a strong buy zone at 24,765-24,875 levels on Thursday, August 21. For the Nifty Bank, the market wizard expects support to emerge at 55,350-55,525 levels and a strong buy zone at 55,075-55,225 levels.
How market guru Anil Singhvi sums up trade setup:
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Global: Neutral
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FII: Negative
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DII: Positive
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F&O: Neutral
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Sentiment: Positive
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Trend: Neutral
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FII long positions unchanged at 10 per cent as before Wednesday’s session
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Nifty put-call ratio (PCR) at 1.28 vs 1.14
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Nifty Bank PCR at 0.76 vs 0.82
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Volatility index India VIX unchanged at 11.78
The market wizard expects a higher zone at 25,090-25,200 levels and a profit-booking zone at 25,250-25,350 levels for the headline index.
For the banking index, he expects a higher zone at 55,850-56,000 levels and a strong sell zone at 56,150-56,300 levels.
What market data signals
- Nifty and Nifty Bank have closed in the green for five sessions in a row
- Nifty hit an intraday high of 25,088 and closed at 25,050 — a three-week high
- It closed above its 50-day moving average (DMA) of 25,015
- It has formed higher lows for seven straight sessions; this indicates buying interest at lower levels
- Nifty Bank has formed a lower high and lower low for two days, signalling weakness
- Midcap and smallcap indices are at two-week highs
- Mid-Smallcap Index has made higher highs for six consecutive sessions
- Nifty IT index at a three-week high
- Reliance touched a 19-session intraday high of Rs 1,425
- HDFC Bank and ICICI Bank made lower highs and lower lows for the second day
- Both stocks weakened after SEBI’s proposal to reduce their weightage in the index
FII and DII flows
- DIIs have been net buyers for 32 straight sessions — their longest purchasing spree since January 31
- FII index futures long positions stand at 9.9 per cent
- For the first time since 2012, FII index futures long positions have remained below 10 per cent for 14 back-to-back sessions
- On Wednesday, FIIs sold across cash, index and stock futures
- On Tuesday, they purchased all three segments
- FIIs look uninterested despite strong domestic triggers
- They are neither in the mood for major short covering nor for buying
- Only clarity on tariffs can change FII sentiment
Has Nifty50 confirmed a breakout above 25,000?
- There was a strong close above 25,000 on Wednesday; a close above 25,025 on Thursday will confirm the breakout
- Strong intraday support for Nifty is placed at 24,850-24,925
- After a soft start, buy in two parts around support levels
- Sustaining above 25,100 will trigger an intraday breakout and short covering
- The next target will be placed in the 25,150-25,250 range
Which sectors are likely to see re-ratings?
- FMCG and insurance sectors expected to see re-ratings
- Four big reasons to invest in FMCG:
- Income tax exemption up to Rs 12 lakh in the Budget
- Rapidly falling interest rates
- Good monsoon
- Expected relief in GST
Why invest in the insurance sector?
- Long-standing demand for lower GST on insurance
- If GST becomes zero for individuals, it will be highly positive for life and health insurance companies
ANIL SINGHVI MARKET STRATEGY | How to trade Nifty Bank and Nifty50?
For existing long positions:
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Nifty intraday stop loss at 24,900 and closing stop loss at 24,850
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Nifty Bank intraday and closing stop loss at 55,500
For existing short positions:
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Nifty intraday and closing stop loss at 25,150
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Nifty Bank intraday stop loss at 56,150 and closing stop loss at 56,000
For new positions in Nifty50:
- The best range to buy Nifty is 24,850-25,000 with a stop loss at 24,750 for targets of 25,050, 25,085, 25,125, 25,150, 25,200 and 25,250
- Aggressive traders can sell Nifty in the 25,125-25,250 range with a strict stop loss at 25,350 for targets of 25,090, 25,050, 25,000, 24,925, 24,875 and 24,850
For new positions in Nifty Bank:
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The best range to buy Nifty Bank is 55,225-55,375 with a stop loss at 55,000 for targets of 55,500, 55,625, 55,725, 55,825, 55,950 and 56,000
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Aggressive traders can sell Nifty Bank in the 55,950-56,150 range with a strict stop loss at 56,300 for targets of 55,850, 55,750, 55,650, 55,575, 55,500 and 55,375
Stocks in F&O ban
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Out of ban: PG Electroplast
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Already in ban: Titagarh, RBL Bank
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New in ban: None
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Buy Clean Science Tech shares near the floor price of Rs 1,030 or near the block deal price
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