Anil Singhvi Market Strategy September 2: 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 25,125-25,200 levels and a stronger support zone at 24,950-25,050 levels on Monday, September 2. 

For the Nifty Bank, he expects support to come in at 51,025-51,150 levels and a stronger support zone at 50,800-50,925 levels.

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

• Global: Positive
• FII: Positive
• DII: Negative
• F&O: Neutral
• Sentiment: Positive
• Trend: Positive
• FII long positions at 72 per cent vs 70 per cent the previous day
• Nifty put-call ratio (PCR) at 1.41 vs 1.42
• Nifty Bank PCR at 0.92 vs 0.83
• India VIX down three per cent at 13.39

The market wizard sees a higher zone at 25,275-25,325 and a "blue-sky zone" above 25,325 for the headline index.

For the banking index, he sees a higher zone coming in at 51,375-51,575 and a profit-booking zone at 51,650-51,775 levels.

What triggered a new high on Wall Street?

• US personal consumption data better than expectations
• Consumer spending at six-month high
• Goldman Sachs has raised its Q3 GDP projection
• No fear of a recession anymore
• Last week saw four closing highs

How strong are domestic datapoints?

• July core sector growth at 6.1 per cent 
• Fiscal deficit at 17% of full-year target
• August GST collections up 10 per cent
• GDP growth at five-quarter low of 6.7 per cent
• Weakness owing to elections
• Signs of a recovery in sight

Can market rally for a record 13th day in a row?

• All signals point to a strong start
• Strong global signals
• Strong buying by FIIs 
• Nifty50 technically strong after 12 back-to-back sessions of gains
• There's only one risk: profit booking possible owing to the one-way rally so far

MARKET STRATEGY 

For existing long positions:

• Nifty intraday stop loss at 25,150 and closing stop loss at 25,000 
• Nifty Bank intraday stop loss at 51,200 and closing stop loss at 50,900

For existing short positions:

• Nifty intraday stop loss at 25,150 and closing stop loss at 25,000 
• Nifty Bank intraday stop loss at 51,200 and closing stop loss at 50,900

For new positions in Nifty50:

• The best range to buy Nifty is 25,050-25,150 with a stop loss at 24,950 for targets of 25,200, 25,225 and 25,250; a blue-sky zone above 25,300 

• Aggressive traders can sell Nifty if it breaks below 25,150; for that, use a strict stop loss at day's high for targets of 25,050, 25,000, 24,950, 24,875 and 24,825

For new positions in Nifty Bank: 

• Aggressive traders can buy Nifty Bank in the 51,000-51,150 range with a strict stop loss at 50,900 for targets of 51,250, 51,350, 51,400, 51,475 and 51,575

• Aggressive traders can sell Nifty Bank with a strict stop loss at 51,550 for targets of 51,250, 51,150, 51,025, 50,950, 50,850 and 50,800 

What should be today's strategy?

• Book some profits at higher levels
• Keep a small stop loss at long positions
• It is important for Nifty50 and Nifty Bank to close above 25,000 and 51,000 respectively 
• Nifty faring better for going long, Nifty Bank better for shorting

• New in ban: Balrampur Chini

• Already in ban: None

• Out of ban: None

Stocks of the Day: HDFC Bank & HPCL

Sell HDFC Bank futures for targets of Rs 1,625 and Rs 1,605 with a stop loss at Rs 1,663 

• MSCI rebalancing has happened 
• Stock may fall due to lack of buying and due to profit booking

Buy HPCL futures for targets of Rs 428 and Rs 433 with a stop loss at Rs 416

• Crude oil slides below $77/barrel
• OMCs stocks are looking very strong

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