Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 23,425-23,500 levels and a strong buy zone at 23,325-23,400 levels on Wednesday, June 19, a day after domestic equity benchmarks scaled their respective record closing highs. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

For the Nifty Bank, he expects support to come in at 50,100-50,250 levels and a strong buy zone at 49,900-50,000 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 49 per cent vs 47 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.26 vs 1.30
  • Nifty Bank PCR at 1.22 vs 0.96
  • Volatility index India VIX up one per cent at 12.97

He sees a higher zone for the headline index emerging at 23,575-23,625 levels and a "blue-sky zone" above 23,625 with the next big target at 23,800.

For the banking index, he expects a higher zone at 50,650-50,775 levels and a strong sell zone at 50,950-51,100 levels.

EDITOR’S TAKE 

  • Strong global signals
  • Good inflows by FIIs & DIIs
  • Indices scaled record closing highs on Tuesday, market very strong technically
  • Four straight days of record peaks
  • Very strong support for Nifty50 placed at 23,200-23,400 levels
  • Next big target for Nifty50 at 23,800-24,000 levels
  • Next big target for Nifty Bank at 50,650-50,775 levels; index ready to reach 51,000 after that
  • Strong buying to continue in midcap & smallcap stocks
  • Investors should continue with ‘buy on dips’ strategy 
  • Fertiliser, banking, pharma, manufacturing shares to be in demand
  • Wait for buying defence and railway stocks that have rallied recently

What is risky?

  • FOMO sentiment in the market
  • Everyone wants to buy now that election results are out
  • Several stocks with weak fundamentals are commanding high valuations
  • Big block deals, QIPs, IPOs to leave market with less liquidity
  • Nifty approaching targets to the tune of 23,800-24,000 

Big fund-raising plans

  • 7 block deals worth Rs 17,000 crore so far this month
  • 4 block deals amounting to Rs 22,000 crore on Wednesday
  • A QIP worth Rs 1700 crore on Wednesday
  • 3 companies have raised Rs 1,500 crore via IPOs 
  • Large deals at Rs 45,000 crore so far this month  

ANIL SINGHVI MARKET STRATEGY   ​

For existing long positions:

  • Nifty intraday and closing stop loss at 23,375
  • Nifty Bank intraday stop loss at 50,000 and closing stop loss at 49,700

For existing short positions:

  • Nifty intraday and closing stop loss at 23,625
  • Nifty Bank intraday stop loss at 50,600 and closing stop loss at 50,500

For new positions in Nifty50: 

  • The best range to buy Nifty is 23,475-23,575 with a stop loss at 23,375 for targets of 23625; above 23,625, one may hold their positions with a trailing stop loss for the next big target of 23,800
  • Aggressive traders can sell Nifty in the 23,650-23,750 range with a strict stop loss at 23,800 for targets of 23,575, 23,550, 23,500, 23,475, 23,450 and 23,400

For new positions in Nifty Bank: 

  • The best range to buy Nifty Bank is 50,000-50,250 with a stop loss at 49,850 for targets of 50,425, 50,500, 50,550, 50,650 and 50,775
  • Aggressive traders can sell Nifty Bank in the 50,650-50,775 range with a strict stop loss at 50,850 for targets of 50,550, 50,450, 50,250, 50,175, 50,100 and 50,025

F&O ban update 

  • New in ban: GNFC, Piramal Enterprises
  • Out of ban: GMR Airports
  • Already in ban: Balrampur Chini, Hindustan Copper, India Cements, SAIL, Sun TV

Stock of the Day

Buy RCF shares with a stop loss at Rs 170 for targets of Rs 181, Rs 183 and Rs 188

Catch all the latest stock market updates here. For all other news related to business, market, tech and auto, visit Zeebiz.com.