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 shares his strategy for todays session on Dalal Street. Check out his take on key support and resistance levels for the Nifty and the Nifty Bank, and how he views the market.
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
Stocks in F&O ban
- New in ban: Chambal Fertilisers, NALCO, SAIL
- Out of ban: Balrampur Chini
- Already in ban: OFSS, Biocon, PNB, LIC Housing Finance, Birlasoft, GNFC, Granules India, Aarti Industries, RBL Bank
Stocks of the Day
Buy Balrampur Chini futures with a stop loss at Rs 577 for targets of Rs 592, Rs 599 and Rs 610
- Sugar stocks are in a strong uptrend
- Raw sugar prices rising in the sugar market
- The stock is set to be a beneficiary of increased ethanol blending
Buy JSW Steel futures with a stop loss at Rs 940 for targets of Rs 958, Rs 965 and Rs 980
- There is a recovery in metals post-Fed meeting
- One can expect a bounceback in metal stocks
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