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. 

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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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