Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support to emerge at 23,000-23,100 levels and a strong buy zone at 22,750-22,950 levels for the headline Nifty50 index on Wednesday, January 15. For the Nifty Bank, he expects support at 48,250-48,500 levels and a strong buy zone at 47,900-48,050 levels. 

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The market wizard points out that foreign institutional investors' (FIIs) net sale of Indian shares, totaling Rs 8,132 crore, is disappointing, especially in a strong market, though domestic institutional investors (DIIs) have made net purchases worth Rs 7,900 crore. 

It is important for the index to hold Monday's low with strong support at 22,750-23,000, any slide below which may lead to further weakness on Dalal Street, he adds. 

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: Negative
  • FII long positions at 17 per cent vs 15 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.86 vs 0.72
  • Nifty Bank PCR at 0.6 vs 0.56
  • Volatility index India VIX down three per cent at 15.47

The market wizard sees a higher zone at 23,265-23,350 levels and a strong sell zone at 23,425-23,550 levels for the headline index.  

For the banking index, he sees a higher zone at 49,000-49,225 levels and a strong sell zone at 49,375-49,500 levels. The market guru sees strong support for the Nifty Bank at 47,900-48,225 levels, below which any level may lead to further weakness. 

In case of a recovery, the Nifty and the Nifty Bank may settle in the 23,500-23,700 and 49,500-50,000 ranges, he points out. 

Closing levels above 23,350 and 49,250 on Wednesday will be a good signal for the market, according to the market wizard. 

What should investors do?

  • Investors must buy in the 22,800-23100 range
  • Largecap stocks are more attractive than smaller segments
  • FMCG, PSU and power stocks available at lower price-to-earnings (PE) ratios are attractive at this juncture
  • One may consider investing in the market through mutual funds

Three areas mutual fund investors may focus on

  • Large and midcap categories
  • The best choice will be flexicap equity funds
  • Multicap funds are also a good option if the investor finds the fund manager trustworthy 

  • ANIL SINGHVI MARKET STRATEGY

For existing long positions:

  • Nifty intraday and closing stop loss at 23,000
  • Nifty Bank intraday stop loss at 48,200 and closing stop loss at 48,000

For existing short positions:

  • Nifty intraday stop loss at 23,350 and closing stop loss at 23,525
  • Nifty Bank intraday and closing stop loss at 49,050 

For new positions in Nifty50:

  • The best range to buy Nifty is 22,800-23,000 with a stop loss at 22,700 for targets of 23,075, 23,125, 23,175, 23,250, 23,350 and 23,425
  • Aggressive traders can buy Nifty with a strict stop loss at 22,950 for targets of 23,250, 23,350, 23,425, 23,500, 23,550 and 23,600
  • Aggressive traders can sell Nifty in the 23,350-23,500 range with a strict stop loss at 23,625 for targets of 23,275, 23,175, 23,135, 23,050, 22,950 and 22,800

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 47,900-48,250 with a stop loss at 47,700 for targets of 48,500, 48,600, 48,725, 48,900 and 49,000
  • Aggressive traders can buy Nifty Bank with a strict stop loss at 48,200 for targets of 49,000, 49,225, 49,375, 49,475, 49,750, 49,825 and 49,950

Stocks in F&O ban ​

  • New in ban: Angel One
  • Out of ban: Manappuram Finance
  • Already in ban: Aarti Industries, L&T Finance, Bandhan Bank, Hindustan Copper, RBL Bank

Shoppers Stop Results Review

  • Strong results
  • Buy Shoppers Stop shares for targets of Rs 628, Rs 640 and Rs 650 with a stop loss at Rs 610 

Stock of the Day: BSE

  • Buy BSE futures for targets of Rs 5,500, Rs 5,550 and Rs 5,600 with a stop loss at Rs 5,250 
  • Nuvama has initiated coverage with a Rs 6,730 target

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