Anil Singhvi’s Strategy December 21: Day support zone on Nifty is 16,565-16,615 & Bank Nifty is 34,400-34,500

Amid neutral global markets, negative foreign institutional investors (FIIs), sentiment, positive domestic institutional investors (DIIs) and future & options (F&O) cues, the short-term trend of the Indian stock markets will be negative on Tuesday, December 21, 2021. 

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Domestic equity barometers ended with deep cuts after a weak session on Monday, December 20, 2021, mirroring weak global cues. At the close, the S&P BSE Sensex slumped 1189.73 points, or 2.09 per cent, to 55,822.01. The Nifty 50 index tumbled 371 points, or 2.18 per cent, to close at 16,614.20. The Bank Nifty index slipped 1,178.80 points or 3.31 per cent to end at 34,439.85.

The broader markets at the BSE underperformed the Sensex with S&P BSE MidCap and S&P BSE SmallCap settling 3.42 per cent and 3.31 per cent lower, respectively. In the sectoral indices at NSE, all the indices closed in negative territory.

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for December 21:

Day support zone on Nifty is 16,565-16,615, below that 16,425-16,500 is a strong Buy zone.

Day higher zone on Nifty is 16,700-16,775, above that 16,825-16,900 is a strong Sell zone.

Day support zone on Bank Nifty is 34,400-34,500, below that 33,900-34,025 is a strong support zone.

Day higher zone on Bank Nifty is 34,775-34,975, above that 35,125-35,325 is a strong Sell zone.

The small day range for trading on Nifty is 16,615-16,775, while the medium and bigger day ranges are 16,565-16,825 and 16,500-16,890, respectively.

The small day range for trading on Bank Nifty is 34,450-34,775, while the medium and bigger day ranges are 34,025-34,975 and 33,900-35,125, respectively.

FIIs long position at 53% Vs 57%.

PCR oversold at 0.72 Vs 0.80, Short covering expected.

India VIX up by 16% at 18.97.

For Existing Long Positions:

Nifty Intraday stop loss is 16,400 n Closing stop loss is 16,600.

Bank Nifty Intraday stop loss is 33,900 and Closing stop loss is 34,400.

For Existing Short Positions:

Nifty Intraday and Closing stop loss are 16,925.

Bank Nifty Intraday and Closing stop loss are 35,150.

For New Positions:

Buy Nifty with a stop loss of 16,575 and target 16,700, 16,775, 16,825, 16,890.

Sell Nifty in 16,825-16,925 range with a stop loss of 17,000 and target 16,785, 16,700, 16,565, 16,500, 16,450.

For New Positions:

Buy Bank Nifty with a stop loss of 34,350 and target 34,675, 34,775, 34,900, 34,975, 35,025, 35,125.

Sell Bank Nifty in 34,975-35,175 range with a stop loss of 35,350 and target 34,900, 34,800, 34,675, 34,575, 34,500, 34,450.

F&O Ban Update:

Out Of Ban: Vodafone Idea

Already In Ban: IB Housing Finance, Escorts

New In Ban: Nil

MapmyIndia Listing Preview: Expected to list in 1650-1750 range against issue price of 1033. Investors should HOLD with a Stop Loss of 1575.

CMS Info Systems IPO Preview: APPLY AS INVESTMENT STOCK

Positives:

Market Leader
Good Promoters
Strong Financial Track Record
Reasonable Valuations

Negatives:

Govt focus on Digital Payments
Merger of Banks
Dependence on third-party service providers