Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support to emerge at 23,600-23,675 levels and a strong buy zone at 23,525-23,575 levels for the headline Nifty50 index on Thursday, December 26. For the Nifty Bank, he expects support at 50,875-51,025 levels and a strong buy zone at 50,625-50,775 levels. 

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

  • Global: Positive
  • FII: Negative
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Neutral
  • Trend: Neutral
  • FII long positions at 24 per cent vs 30 per cent before the previous session
  • Nifty put-call rato (PCR) at 0.94 vs 0.84
  • Nifty Bank PCR at 0.93 vs 0.59
  • Volatility index India VIX down 2.5 per cent at 13.18  

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The market wizard sees a higher zone for the headline index at 23,800-23,870 levels and a profit-booking zone at 23,950-24,050 levels. For the banking index, he sees a higher zone at 51,400-51,575 levels and a profit-booking zone at 51,775-51,900 levels.

Is Dow's four-day winning run of any use on Dalal Street?

  • On Tuesday, all three main US indices opened at their bottoms
  • All three closed at their intraday highs, each having staged a full recovery 
  • Two straight sessions of American indices closing at their intraday highs
  • Buying on Wall Street is aiding sentiment on Dalal Street 

Can you expect short-covering action by FIIs on the monthly F&O expiry day?

  • On Tuesday, FIIs pulled out a net Rs 2,450 crore from the cash segment
  • Net flow across cash, stock and index futures amounted to Rs 1,500 crore; a small amount given the recent trend
  • Domestic funds net purchased equities to the tune of Rs 2,819 crore in the cash segment
  • FIIs' long positions in index futures are very low at 24 per cent
  • One can expect short-covering moves in futures on Thursday
  • There is a low possibility of significant selling by FIIs till the end of the year

Can you expect Nifty Bank to stage strong moves in the January F&O series?

  • Typically, the banking index stages significant moves in the January series
  • In eight out of the past 10 years, Nifty Bank has staged moves of 4-12 per cent during this period
  • Nifty Bank has logged five negative and positive series each in the 10-year period
  • In the last five years, there were three instances of negative January series for Nifty Bank
  • Nifty Bank rollovers are extremely low
  • Slowly, traders seem to be losing interest in Nifty Bank
  • In May 2021, a rollover of 65 per cent was recorded in Nifty Bank
  • In case of a pre-Budget rally, Nifty Bank is set to lead gains 

What to do today?

  • One can expect big moves owing to the F&O expiry due by the end of the session
  • Trade with strict stop losses
  • Keep monitoring Nifty Bank for any market-leading moves
  • Buying to intensify if Nifty crosses 23,950 and Nifty Bank 51,625 on a closing basis
  • Buying may intensify in midcap and smallcap stocks

ANIL SINGHVI MARKET STRATEGY

For existing long positions:

  • Nifty intraday stop loss at 23,625 and closing stop loss at 23,575
  • Nifty Bank intraday stop loss at 51,000 and closing stop loss at 50,750

For existing short positions:

  • Nifty intraday stop loss at 23,900 and closing stop loss at 24,000
  • Nifty Bank intraday stop loss at 51,425 and closing stop loss at 51,625

For new positions in Nifty50:

  • The best range to buy Nifty is 23,575-23,675 with a stop loss at 23,500 for targets of 23,725, 23,750, 23,800, 23,860 and 23,950
  • Aggressive traders can buy Nifty with a strict stop loss at 23,625 for targets of 23,800, 23,860, 23,950, 24,000, 24,050 and 24,150
  • Aggressive traders can sell Nifty in the 23,850-24,000 range with a strict stop loss at 24,100 for targets of 23,800, 23,750, 23,700, 23,650, 23,600 and 23,525

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 50,625-50,775 with a stop loss at 50,500 for targets of 50,875, 50,975, 51,025, 51,125, 51,225 and 51,325
  • Aggressive traders can buy Nifty Bank with a strict stop loss at 50,950 for targets of 51,325, 51,400, 51,575, 51,625, 51,775, 51,900 and 52,000
  • Aggressive traders can sell Nifty Bank in the 51,575-51,775 range with a strict stop loss at 51,850 for targets of 51,425, 51,325, 51,250, 51,125, 51,025 and 50,775

Stocks in F&O Ban ​

  • Out of ban: Bandhan Bank, Manappuram Finance, Hindustan Copper, Granules India
  • Already in ban: RBL Bank
  • New in ban: None

Stocks of the Day

Buy Share India shares for targets of Rs 316, Rs 320 and Rs 325 with a stop loss at Rs 304 

  • The company has bought a stake in MSE for Rs 60 crore 
  • Buy Ceigall India shares for targets of Rs 348, Rs 352 and Rs 360 with a stop loss at Rs 340 
  • The company has received a Rs 981-crore order

Buy Jubilant FoodWorks futures for targets of Rs 713, Rs 720 and Rs 727 with a stop loss at Rs 695 

  • The stock is in a strong uptrend
  • Investors may buy on dips

Buy Fortis Healthcare shares for targets of Rs 690, Rs 700 and Rs 715 with a stop loss at Rs 673 

  • Hospital stocks are in a strong uptrend
  • AB Sunlife sold 1.52 crore shares in the open market on December 20
  • Short-term selling pressure is now behind

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