Anil Singhvi Market Strategy January 8: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support to emerge at 23,550-23,650 levels and a strong buy zone at 23,350-23,450 levels for the headline Nifty50 index on Wednesday, January 8. For the Nifty Bank, he expects support at 49,750-49,950 levels and a stronger support zone at 49,425-49,650 levels. 

The market wizard believes traders will get plenty of opportunities on both sides, suggesting buying in case of a gap-down start and booking profits at higher levels during the session.

According to him, closing levels above 23,825 and 50,750 for the Nifty50 and the Nifty Bank will signal the end of weakness on Dalal Street for now. On the other hand, levels below 23,500 and 49,750 will lead to more weakness, respectively, he says. 

Singhvi suggests buying in select midcap and smallcap stocks.

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

• Global: Negative
• FII: Neutral
• DII: Positive
• F&O: Neutral
• Sentiment: Neutral
• Trend: Neutral
• FII long positions at 20 per cent vs 18 per cent the previous day
• Nifty put-call ratio (PCR) at 0.82 vs 0.72
• Nifty Bank PCR at 0.73 vs 0.70
• Volatility index India VIX down six per cent at 14.66

The market wizard sees a higher zone at 23,750-23,825 levels and a strong sell zone at 23,870-24,000 levels for the headline index.  

For the banking index, he sees a higher zone at 50,450-50,600 levels and a strong sell zone at 50,725-50,900 levels.

What should traders and investors do?

• Investors must hold their positions without panicking
• Investors should take positions in quality stocks
• It is difficult for traders to tolerate wild swings in the market; maintaining light positions can help
• Traders should keep apt stop losses at the current juncture

ANIL SINGHVI MARKET STRATEGY

For existing long positions:

• Nifty intraday and closing stop loss at 23,550

• Nifty Bank intraday and closing stop loss at 49,900

For existing short positions:

• Nifty intraday and closing stop loss at 23,825
• Nifty Bank intraday stop loss at 50,500 and closing stop loss at 50,750

For new positions in Nifty50:

• The best range to buy Nifty is 23,550-23,650 with a stop loss at 23,450 for targets of 23,700, 23,750, 23,800, 23,850, 23,870 and 24,000

• Aggressive traders can sell Nifty in the 23,800-23,870 range with a strict stop loss at 24,000 for targets of 23,750, 23,700, 23,650, 23,600, 23,550 and 23,475

For new positions in Nifty Bank:

• Aggressive traders can buy Nifty Bank in the 49,750-49,950 range with a strict stop loss at 49,650 for targets of 50,200, 50,450, 50,600, 50,725, 50,850 and 50,975

• Aggressive traders can sell Nifty Bank in the 50,600-50,750 range with a strict stop loss at 51,000 for targets of 50,475, 50,200, 50,000, 49,925, 49,800 and 49,750

Stocks in F&O ban ​

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

Stocks of the Day

Buy Signature Global shares for targets of Rs 1,370, Rs 1,385 and Rs 1,400 with a stop loss at Rs 1,335 

• Strong quarterly update

Buy Ashiana Housing shares for targets of Rs 368, Rs 372 and Rs 375 with a stop loss at Rs 359 

• Strong quarterly update
• Sales up 161 per cent
• Bookings up 79 per cent 

Buy Reliance futures for targets of Rs 1,260 and Rs 1,275 with a stop loss at Rs 1,227 

• Jefferies and Bernstein have their targets at Rs 1,690 and Rs 1,520 respectively

Buy Bajaj Auto futures for targets of Rs 8,900, Rs 8,975 and Rs 9,050 with a stop loss at Rs 8,750 

• Auto stocks are looking strong
• Bajaj Auto can outperform in the two-wheeler segment 

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