Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 24,850-24,925 levels and a strong buy zone at 24,700-24,800 levels on Monday, October 14. 

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For the Nifty Bank, he expects support at 50,900-51,000 levels and a strong buy zone at 50,475-50,575 levels.

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

  • Global: Positive
  • FII: Negative
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Neutral
  • Trend: Neutral
  • FII long positions unchanged at 36 per cent as the previous session
  • Nifty put-call ratio (PCR) at 0.84 vs 0.93
  • Nifty Bank PCR at 0.71 vs 1.04
  • Volatility index India VIX down 2 per cent at 13.25

The market wizard sees a higher zone for the headline index at 25,030-25,130 levels and a strong sell zone at 25,230-25,330 levels. 

For the banking index, he sees a higher zone at 51,375-51,525 levels and a profit-booking zone at 51,675-51,850 levels. 

EDITOR'S TAKE

  • Use a listless opening as an opportunity to buy
  • Add positions at important support levels and book profits at higher levels
  • It is time to focus on stocks and stay away from index
  • Buy in metal, PSU, banking and midcap pharma spaces
  • There will be plenty of opportunities in midcap and smallcap stocks
  • Focus on stocks of companies posting results
  • Moves above 25,250 and 51,850 will be followed by strong moves in Nifty and Nifty Bank

What's driving a rally on Wall Street?

  • Strong bank results
  • Easing wholesale inflation
  • Strong trend continues

What does continuous selling by FIIs mean?

  • There are signs of slowing FII outflows
  • On Friday, FII outflows in the cash segment were the smallest in 10 sessions
  • Buying emerged in index futures after 9 sessions
  • A good short covering move in stock futures
  • Rapid buying by DIIs is supporting the market

When will investors exit the 'sell on rise' mode?

  • It is possible this week
  • Wall Street is looking strong
  • FII outflow pressure decreasing
  • No escalation in the Israel-Iran conflict
  • Crude oil is stable at $78 per barrel
  • No announcement by China on Saturday
  • US stock strength combined with the return of FII inflows will trigger a rally on Dalal Street
  • Early signs today
  • Closing levels above 25,150 and 51,550 will lead to the strengthening of buying momentum in Nifty50 and Nifty Bank

What's the earnings season like so far?

  • A weak start
  • A weak performance by DMart followed lower-than-expected TCS earnings
  • No major expectations from the Q2 FY25 season anyway
  • Investors should only be cautious about any big accident on the results front
  • Even slight outperformance will trigger a rally

MARKET STRATEGY 

For existing long positions:

  • Nifty intraday and closing stop loss at 24,900
  • Nifty Bank intraday and closing stop loss at 50,850

For existing short positions:

  • Nifty intraday and closing stop loss at 25,150
  • Nifty Bank intraday and closing stop loss at 51,575

For new positions in Nifty50:

  • Buy Nifty with a stop loss at 24,900 for targets of 25,015, 25,040, 25,130, 25,225, 25,250 and 25,300
  • Aggressive traders can sell Nifty in the 25,130-25,230 range with a strict stop loss at 25,300 for targets of 25,050, 25,015, 24,975, 24,950, 24,925 and 24,850

For new positions in Nifty Bank

  • Aggressive traders can buy Nifty Bank with a strict stop loss at 50,850 for targets of 51,350, 51,475, 51,550, 51,675, 51,775 and 51,850
  • Aggressive traders can sell Nifty Bank in the 51,575-51,775 range with a strict stop loss at 51,900 for targets of 51,475, 51,350, 51,175, 51,050, 51,000 and 50,900

Stocks in F&O ban

  • Out of ban: Bandhan bank, Birlasoft, Tata Chemicals
  • Already in ban: Chambal Fertilisers, SAIL, IDFC First Bank, PNB, GNFC, Granules India, Manappuram Finance, Hindustan Copper, RBL Bank
  • New in ban: None

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