Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 24,425-24,500 levels and a strong buy zone at 24,300-24,400 levels on Monday, August 19. 

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For the Nifty Bank, he expects support to come in at 50,175-50,375 levels and a buy zone at 50,000-50,150 levels.

Here's how Anil Singhvi sums up the market setup:

  • Global: Positive
  • FII: Positive
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Positive
  • Trend: Positive
  • FII long positions at 50 per cent vs 47 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.31 vs 1.14
  • Nifty Bank PCR at 1.03 vs 0.75
  • India VIX down seven per cent at 14.40

He sees a higher zone for the headline index coming in at 24,600-24,675 levels and a profit-booking zone at 24,725-24,800 levels. 

For the Nifty Bank, he expects a higher zone at 50,700-50,875 and a profit-booking zone at 50,975-51,075 levels.

EDITOR’S TAKE 

  • Investors should maintain 'buy on dips' strategy
  • Consider buying at the first support level
  • A good range to enter Nifty50 is 24,315-24,425; next target at 24,725-24,800 levels
  • For Nifty Bank, a good entry range is 50,000-50,200; next target at 50,975-51,175

ANIL SINGHVI MARKET STRATEGY   

For existing long positions:

  • Nifty intraday and closing stop loss at 24,200
  • Nifty Bank intraday and closing stop loss at 50,000

For existing short positions:

  • Nifty intraday and closing stop loss at 24,600
  • Nifty Bank intraday and closing stop loss at 50,650

For new positions in Nifty50: 

  • Buy Nifty with a stop loss at 24,400 for targets of 24,600, 24,640, 24,675, 24,725, 24,775 and 24,800
  • Aggressive traders can sell Nifty in the 24,675-24,775 range with a strict stop loss at 24,850 for targets of 24,640, 24,600, 24,575, 24,550, 24,500 and 24,425

For new positions in Nifty Bank: 

  • Buy Nifty Bank with a stop loss at 50,150 for targets of 50,650, 50,750, 50,825, 50,875, 50,975 and 51,075
  • Aggressive traders can sell Nifty Bank in the 50,875-50,975 range with a strict stop loss at 51,100 for targets of 50,825, 50,750, 50,700, 50,650, 50,600 and 50,525

Stocks in F&O ban

  • Out of ban: AB Capital, Birlasoft
  • Already in ban: Piramal Enterprises, GNFC, NMDC, Aarti Industries, Chambal Fertilisers, Sun TV, SAIL, Biocon, Granules, Bandhan Bank, PNB, AB Fashion, LIC Housing Finance, Manappuram Finance, IndiaMART, RBL Bank, India Cements
  • New in ban: None

Why have Wall Street stocks strengthened?

  • Good economic data
  • Fears of a recession fading
  • Hopes of faster and bigger reduction in headline interest rates
  • Bond yield below 3.9 per cent for the first time in 10 years
  • Crude oil below $80 a barrel 
  • No negative updates on Israel-Iran conflict
  • Four straight days of gains
  • Dow within 700 pts of life high

Is everything hunky-dory now?

  • Global markets signalling sharp upmoves
  • Domestic funds have remained net purchasers for 10 straight days
  • FIIs switched to buying on Friday
  • Most participants had come in correction mode
  • Market extremely light, ready for a recovery
  • No fear of FII selling as long as no bad news from Iran-Israel or US
  • Only negative global signals can hurt Dalal Street at this point

Is there a new high in the making on Dalkal Street?

  • High probability of a fresh high
  • One can expect a high by the first week of September
  • Typically, market remains on bullish mode near Ganesh Chaturthi

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