Anil Singhvi Market Strategy July 11: Important levels to track in Nifty50, Nifty Bank today
Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi shares his strategy for todays session on Dalal Street. Check out his take on key support and resistance levels for the Nifty and the Nifty Bank, and how he views the market.
Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 24,200-24,275 levels and a strong buy zone at 24,050-24,175 levels on Thursday, July 11.
For the Nifty Bank, he expects support to come in at 51,850-52,000 levels and a strong buy zone at 51,650-51,775 levels.
Here's how Anil Singhvi sums up the market setup:
- Global: Positive
- FII: Negative
- DII: Positive
- F&O: Neutral
- Sentiment: Positive
- Trend: Positive
- FII long positions at 80 per cent vs 84 per cent the previous day
- Nifty put-call ratio (PCR) at 0.97 vs 1.28
- Nifty Bank PCR at 0.79 vs 0.69
- India VIX up one per cent at 14.43
He sees a higher zone for the headline index at 24,375-24,450 levels and a "blue-sky zone" above 24,500.
For the banking index, he expects a higher zone at 52,500-52,625 levels and a profit-booking zone at 52,675-52,825 levels.
Why did the market reverse intraday gains on Wednesday?
- Nifty50 achieved major targets near 24,500
- No support from Nifty Bank
- Soaring VIX signalling wild swings
- FII index long positions extremely high
- NSE margin circular triggered selling
What do the bears think?
- Valuations expensive
- Several PSU stocks at 60-80 PE
- Changes in margin rules to lead to lower positions in cash market stocks
- High retail participation in stocks with high valuations
- Anything negative in upcoming Budget to cause a big fall
- A correction important even if Budget is neutral
- Leaving a job and closing an FD to invest is highly risky
Why are the bulls confident?
- It is not only D-Street that is surging; Wall Street has also scaled a series of highs
- A large amount of money invested in MFs
- Some stocks highly expensive, others still available at fair valuations
- Most importantly, most large investors are under-invested
EDITOR’S TAKE
- Global signals strong
- FII and DII flows fair given Wednesday's fall
- Both net bought in cash stocks but sold in F&O scrips
- Weak traedrs lightened their positions on Wednesday
- Seesaw moves expected to continue till Budget
- No one-sided rise or fall expected
- Buy at important support levels
- Keep booking profits at higher levels
- Strong support range for Nifty50 placed at 24,000-24,150
- For Nifty Bank, strong support at 51,850-52,000
- Pharma, metal, shipping stocks to remain strong
ANIL SINGHVI MARKET STRATEGY
For existing long positions:
- Nifty intraday and closing stop loss at 24,275
- Nifty Bank intraday and closing stop loss at 51,950
For existing short positions:
- Nifty intraday stop loss at 24,525 and closing stop loss at 24,450
- Nifty Bank intraday stop loss at 52,550 and closing stop loss at 52,675
For new positions in Nifty50:
- The best range to buy Nifty is 24,150-24,250 with a stop loss at 24,000 for targets of 24,300, 23,325, 24,360, 24,400 and 24,430
- Aggressive traders can sell Nifty in the 24,400-24,475 range with a strict stop loss at 24,525 for targets of 24,365, 24,330, 24,300, 24,275, 24,235, 24,200 and 24,150
For new positions in Nifty Bank:
- Aggressive traders can buy Nifty Bank in the 51,850-52,000 range with a strict stop loss at 51,600 for targets of 52,075, 52,175, 52,250, 52,300, 52,375, 52,475, 52,600 and 52,675
- Aggressive traders can sell Nifty Bank in the 52,625-52,825 range with a strict stop loss at 53,000 for targets of 52,500, 52,425, 52,375, 52,300, 52,200, 52,175 and 52,075
Stocks in F&O ban
- New in ban: RBL Bank
- Already in ban: Balrampur Chini, IEX, Chambal Fertilisers, Indus Towers, GNFC, Bandhan Bank, Piramal Enterprises, AB Fashion, India Cements
- Out of ban: None
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