Anil Singhvi Market Strategy August 28: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 24,875-24,975 levels and a strong buy zone at 24,775-24,825 levels on Wednesday, August 28. 

For the Nifty Bank, he expects support to come in at 50,950-51,100 levels and a strong buy zone at 50,700-50,850 levels.

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

• Global: Neutral
• FII: Positive
• DII: Neutral
• F&O: Neutral
• Sentiment: Positive
• Trend: Positive
• FIIs Long position 58% Vs 55%
• Nifty PCR at 1.22 vs 1.31
• Bank Nifty PCR at 0.86 vs 0.79
• INDIA VIX down by 1.2% at 13.63

The market wizard sees a higher zone coming in at 25,050-25,100 level and a "blue-sky zone" above 25,125 for the Nifty50. 

For the banking index, he expects a higher zone at 51,400-51,500 and a profit-booking zone at 51,575-51,650 levels. 

What do global signals suggest?

• Consumer confidence at 6-month high
• Dow at record levels for two straight sessions
• Strong moves across metals
• Crude oil steady near $79/barrel

What are FII and DII flow trends like?

• DIIs hit a pause after 16 straight days of net buying
• FIIs net buyers for four days in a row
• On Tuesday, net buying in cash, stock & index futures amounted to Rs 8,000 crore

Dalal Street ready for a fresh high?

• In a way, the market is already at a life high; a formal high likely today
• Tuesday marked Nifty's record closing high as index rose for 9 sessions in a row; FMCG, IT, pharma indices scaled peaks
• Smallcap index also clocked a high
• The pace of the rally looks promising
• There is a perfect environment for a life high
• Global markets strong; decent buying by FIIs and DIIs
• Market technically strong

Is there anything that can obstruct the rally?

• Nifty50 & Nifty Bank may see seesaw moves till monthly F&O expiry
• Some correction possible given Nifty50's 9-day winning run
• Traders can take profits near life highs
• Typically, RIL witnesses profit-taking after AGM

​How to trade Nifty Bank on the F&O expiry day?

• An expiry above 51,350 may lead to higher levels
• Strong support expected at 50,800-51,000 
• Expiry expected to be above 51,000 
• Nifty50 remains stronger than Nifty Bank

MARKET STRATEGY 

For existing long positions:

• Nifty intraday stop loss at 24,950 and closing stop loss at 24,800
• Nifty Bank intraday stop loss at 50,900 and closing stop loss at 50,800 

For existing short positions:

• Nifty intraday stop loss at 25,125 and closing stop loss at 25,050
• Nifty Bank intraday stop loss at 51,500 and closing stop loss at 51,350

For new positions in Nifty50:

• The best range to buy Nifty is 24,850-24,950 with a stop loss at 24,750 for targets of 25,000, 25,040 and 25,075; above 25,125, one may hold on to their positions with a trailing stop loss
• Sell Nifty in intraday trade if it breaks below 24,950; keep a strict stop loss at 25,025 for targets of 24,875, 24,825, 24,800, 24,775 and 24,735

For new positions in Nifty Bank: 

• The best range to buy Nifty Bank is 50,925-51,075 with a stop loss at 50,800 for targets of 51,150, 51,250, 51,325, 51,400, 51,475 and 51,575
• Aggressive traders can sell Nifty Bank in the 51,475-51,625 range with a strict stop loss at 51,700 for targets of 51,350, 51,275, 51,150, 51,075, 51,050 and 50,925

• New in ban: Hindustan Copper
• Already in ban: Birlasoft, India Cements, Balrampur Chini
• Out of ban: Aarti Industries, AB Fashion, Chambal Fertilisers, IEX, RBL Bank

Stocks of the Day

• Jefferies has double-upgraded Zydus Life and raised its target from Rs 1,210 to Rs 1,450

• Metals looking very strong

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