Anil Singhvi Market Strategy October 18: 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 24,600-24,700 levels and a strong buy zone at 24,400-24,500 levels on Friday, October 18. 

For the Nifty Bank, he expects support at 50,900-51,050 levels and a stronger support zone at 50,375-50,575 levels.

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

• Global: Positive

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Negative

• Trend: Neutral

• FII long positions unchanged at 33 per cent as the previous day

• Nifty put-call ratio (PCR) at 0.88 vs 0.74

• Nifty Bank PCR at 0.73 vs 1.00

• Volatility index India VIX up 2.5 per cent at 13.39

The market wizard sees a higher zone for the headline index at 24,800-24,900 and a strong sell zone at 24,925-25,025 levels. 

For the banking index, he sees a higher zone at 51,475-51,575 and a strong sell zone at 51,700-51,900 levels. 

What's powering the highs on Wall Street?

• Macroeconomic indicators giving very strong signals
• Retail sales better than expected
• Weekly joblessness data better than expected
• Strong manufacturing PMI data
• Good Netflix earnings released post-market hours; Nasdaq futures strong

What's special in the current fall on Dalal Street?

• In the current phase, this is the first fall stemming from fundamental reasons on Dalal Street
• Weak earnings have spoiled the market mood
• Visibly low confidence about growth among companies
• Fears about a weakening PE multiple

Why are FIIs selling on D-Street?

• Disappointing earnings season so far
• Inflated valuations
• FIIs with hot money are exiting the market
• Foreign investors are preferring the Chinese market over the Indian market

What should traders & investors do?

• Next big Nifty50 support in the 24,400-24,500 range, Nifty Bank support in the 50,200-50,500 range
• Investors should with & watch the ongoing earnings season for taking fresh long positions
• FII selling must be monitored closely
• Traders should trim their positions in Nifty50 and Nifty Bank in 24,900-25,000 and 51,700-51,900 ranges respectively

Hyundai Motor India IPO 

The market guru points out that retail investors have given a lukewarm response to the mega Hyundai Motor India IPO.

This is the only big IPO where the retail portfoilio is not fully subscribed.

MARKET STRATEGY 

For existing long positions:

• Nifty intraday and closing stop loss at 24,675

• Nifty Bank intraday and closing stop loss at 51,000

For existing short positions:

• Nifty intraday and closing stop loss at 25,025

• Nifty Bank intraday and closing stop loss at 52,000

For new positions in Nifty50:

• The best range to sell Nifty is 24,850-24,950 with a stop loss at 25,050 for targets of 24,800, 24,750, 24,700, 24,650, 24,600 and 24,550

• Aggressive traders can buy Nifty in the 24,500-24,600 range with a strict stop loss at 24,400 for targets of 24,700, 24,725, 24,750, 24,800, 24,850 and 24,900

For new positions in Nifty Bank: 

• Buy Nifty Bank in the 50,375-50,575 range with a stop loss at 50,200 for targets of 50,900, 51,000, 51,050, 51,150, 51,275 and 51,350

• The best range to sell Nifty Bank is 51,500-51,700 with a stop loss at 52,000 for targets of 51,350, 51,275, 51,150, 51,050, 51,000 and 50,900