Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support to emerge at 23,450-23,550 levels and a stronger support zone at 23,250-23,350 levels for the headline Nifty50 index on Monday, December 23. For the Nifty Bank, he expects support at 50,175-50,375 levels and a strong buy zone at 49,800-50,075 levels. 

Here's how the market guru sums up the trade setup this morning: 

  • Global: Positive
  • FII: Negative
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Negative
  • Trend: Neutral
  • FII long positions at 31 per cent vs 33 per cent before the previous session
  • Nifty put-call ratio (PCR) at 0.80 vs 0.91
  • Nifty PCR unchanged at 0.52
  • Volatility index India VIX up four per cent at 15.07  

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The market wizard sees a higher zone for the headline index at 23,775-23,875 levels and a strong sell zone at 23,950-24,050 levels. For the banking index, he sees a higher zone at 51,100-51,275 levels and a profit-booking zone at 51,475-51,625 levels.

ANIL SINGHVI MARKET STRATEGY

For existing long positions:

  • Nifty intraday and closing stop loss at 23,500
  • Nifty Bank intraday and closing stop loss at 50,450

For existing short positions:

  • Nifty intraday stop loss at 23,700 and closing stop loss at 24,075
  • Nifty Bank intraday stop loss at 51,000 and closing stop loss at 51,650

For new positions in Nifty50:

  • Buy Nifty with a stop loss at 23,500 for targets of 23,675, 23,775, 23,850, 23,950, 24,000 and 24,050
  • Aggressive traders can sell Nifty in the 23,875-24,000 range with a strict stop loss at 24,100 for targets of 23,800, 23,675, 23,625, 23,575 and 23,550

For new positions in Nifty Bank:

  • Buy Nifty Bank with a stop loss at 50,500 for targets of 50,975, 51,150, 51,250, 51,475, 51,575, 51,625 and 51,775
  • Aggressive traders can sell Nifty Bank in the 51,500-51,775 range with a strict stop loss at 52,000 for targets of 51,275, 51,150, 51,000, 50,775, 50,625 and 50,550

Will FIIs stop selling and start buying soon?

  • On Friday, FIIs pulled out a net Rs 5,900 crore from Indian shares across the cash, stock and index futures segments`
  • Recent FII trends trend has dealt a blow to market
  • One can expect short-covering the market till the monthly F&O expiry
  • Even some buying by FIIs on Monday will trigger a strong upmove in the market

Should you adopt a 'sell on rise' strategy?

  • Traders should trim their positions on rise
  • Light positions will enable them to understand new positions clearly
  • Maintain light overnight positions for now
  • Investors were advised to keep taking positions till Friday
  • They can look for buying opportunities till the first week of January now
  • A surge is expected from the second week of the month till Budget
  • Banking, metal, midcap and smallcap stocks expected to see strong buying interest during a recovery

Important closing levels to track

  • Resistance appears to be in the 24,050-24,200 and 51,575-51,800 ranges for Nifty and Nifty Bank respectively 
  • A closing above 24,075 will signal the end of weakness for Nifty50 
  • Similarly, a close above 51,650 will signal the end of weakness for the banking index
  • Closing levels above 24,200 and 52,150 will lead to further buying in Nifty and Nifty Bank respectively
  • Very strong support at 23,275-23,450 and 49,800-50,075 respectively
  • It is important for the market to form a double-bottom pattern at its November 21 lows

Stocks in F&O Ban ​

  • New in ban: RBL Bank
  • Out of ban: NMDC, PVR
  • Already in ban: Bandhan Bank, Manappuram Finance, SAIL, Hindustan Copper, Granules India

Stocks of the Day

Buy JSW Infra shares for targets of Rs 313 and Rs 318 with a stop loss at Rs 304 

  • Infra stocks offer good investment opportunity before Budget
  • Pre-Budget buying expected after good correction

Buy Zomato futures for targets of Rs 285, Rs 288 and Rs 291 with a stop loss at Rs 274

Buy Swiggy shares in the cash segment for targets of Rs 605, Rs 610 and Rs 620 with a stop loss at Rs 585 

  • No GST imposed on food delivery platforms in council meeting

Buy Aurobindo Pharma futures for targets of Rs 1,255, Rs 1,268 and Rs 1,275 with a stop loss at Rs 1,230 

  • The company's UK subsidiary has received approval for a cancer drug

Buy JSW Steel futures for targets of Rs 942, Rs 935 and Rs 952 with a stop loss at Rs 912 

Buy JSPL futures for targets of Rs 919, Rs 925 and Rs 935 with a stop loss at Rs 899 

  • A duty hike is likely amid a surge in steel imports; DGTR has notified anti-dumping investigation

Sell Dalmia Bharat futures for targets of Rs 1,770 and Rs 1,745 with a stop loss at Rs 1,825 

  • Chief technology officer Rajeev Bansal has resigned

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