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. 

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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
Stocks in F&O ban
  • 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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