Anil Singhvi Market Strategy September 20: 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 25,300-25,375 levels and a strong buy zone at 25,200-25,275 levels on Friday, September 20. 

For the Nifty Bank, he expects support to come in at 52,750-52,850 levels and a strong buy zone at 52,425-52,575 levels.

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

• Global: Positive

• FII: Neutral

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

• FII long positions at 68 per cent vs 69 per cent a day ago

• Nifty put-call ratio (PCR) at 1.26 vs 1.13

• Nifty Bank PCR at 0.93 vs 0.99

• Volatility index India VIX down 7 per cent at 12.47

The market wizard sees a higher zone for the headline index at 25,475-25,575 levels and a "blue-sky zone" above 25,625. 

For the banking index, he sees a higher zone at 53,175-53,350 levels and a blue-sky zone above the 53,500 mark. 

ALSO READ: Fed surprises economists with better-than-expected 50 bps rate cut; what next?

Why did the market fall on Thursday?

• The day began on a strong note
• Selling followed FOMO-triggered buying
• Vodafone Idea, Indus Towers, a few PSU stocks spoiled market mood
• Nifty & Nifty Bank remained strong

Can buying return on Dalal Street?

• Where is selling in the first place?
• The market is in a buying mode only
• Small, insignificant obstructions will always be there
• No need to panic
• Keep adjusting your stop loss and hold on to your positions firmly

EDITOR'S TAKE

• Dalal Street is preparing for a significant upmove
• Global signals are strong
• FIIs & DIIs are ready to direct significant portions of funds
• Retail & institutional investors, who waited until the outcome of the Fed meeting, will now invest in a big way
• The market is strong from a technical perspective
• The pace of buying appears to be just perfect
• Correction to take place hand in hand with buying every day
• The market is in a perfect sectoral rotation mode

What should traders do?

• Risk emanating from a big event (Fed) now out of the way
• Stay aligned with the big trend
• The market is in a buying trend
• Start buying at the first support level itself
• Keep increasing the stop loss to hold long positions
• Record highs in Dow & S&P confirm a strong upcoming trend on Dalal Street

What should investors do?

• Keep buying your favourite stocks
• There are opportunities to buy in midcap & smallcap stocks
• No need to worry as long as Nifty50 holds 24,750
• Wait until December or Januarty to decide whether everything should be sold 

MARKET STRATEGY 

For existing long positions:

• Nifty intraday and closing stop loss at 25,275

• Nifty Bank intraday and closing stop loss at 52,700

For existing short positions:

• Nifty intraday and closing stop loss at 25,525
• Nifty Bank intraday stop loss at 53,400 and closing stop loss at 53,050

For new positions in Nifty50:

• The best range to buy Nifty is 25,300-25,375 with a stop loss at 25,200 for targets of 25,415, 25,440, 25,475, 25,525 and 25,575

• Aggressive traders can sell Nifty in the 25,500-25,600 range with a strict stop loss at 25,650 for targets of 25,450, 25,420, 25,380, 25,335 and 25,300

For new positions in Nifty Bank: 

• The best range to buy Nifty Bank is 52,750-52,850 with a stop loss at 52,650 for targets of 52,950, 53,025, 53,100, 53,175 and 53,350

• Aggressive traders can sell Nifty Bank if it breaks below 52,700; aim at targets of 52,575, 52,500, 52,425, 52,350, 52,275 and 52,200 with a strict stop loss at 53,050