Anil Singhvi Market Strategy September 23: 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 25,775-25,850 levels and a strong buy zone at 25,600-25,700 levels on Monday, September 23. 

For the Nifty Bank, he expects support to come in at 53,350-53,500 levels and a strong buy zone at 53,050-53,175 levels.

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

• Global: Positive
• FII: Positive
• DII: Negative
• F&O: Cautious
• Sentiment: Positive
• Trend: Positive
• FII long positions at 76 per cent vs 68 per cent in the previous session
• Nifty put-call ratio (PCR) at 1.50 vs 1.26
• Nifty Bank PCR at 1.34 vs 0.93
• INDIA VIX up 2.5 per cent at 12.79

The market wizard sees a higher zone for the headline index at 25,950-26,000 and the upmove to extend to 26,200-26,250 once past 26,050. 

For the banking index, he sees a higher zone at 54,000-54,075 levels and a "blue-sky zone" above the 54,125 mark. 

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

Explanation for significant buying by FIIs

• FII buying occurs in three categories:
  • Hedge funds undertaking short-term trading
  • Long-only funds that invest for long term
  • Passive index funds following gauges like MSCI & FTSE
• The mood of hedge funds keeps changing
• Long-only funds are the most important among the three
• Big inflows to come from ETF funds with the higher weightage of Indian markets 
• The markets will benefit from rate cuts in the US

Will buying gather steam going forward?

• Signs of a pickup in strength
• Strong support from global markets
• FII inflows returning
• FOMO buying with the Fed meeting out of the way
• Friday's activity was high
• It is better if the upmove is slow so that there is a minimum risk of corrections
• The next big target for Nifty50 stands at 26,000
• Once that hurdle is out of the way, Nifty50 can go all the way to 26,200-26,250 levels

MARKET STRATEGY 

For existing long positions:

• Nifty intraday stop loss at 25,750 and closing stop loss at 25,350
• Nifty Bank intraday stop loss at 53,450 and closing stop loss at 53,000

For existing short positions:

• Nifty intraday and closing stop loss at 25,850
• Nifty Bank intraday stop loss at 54,100 and closing stop loss at 53,800

For new positions in Nifty50:

• Buy Nifty with a stop loss at 25,750 for targets of 25,850, 25,950 and 26,000; above 26,025, one may hold on to their long positions with a trailing stop loss
• No signal to short Nifty as of now; aggressive traders can sell only of the index breaks below 25,600 or sell near 26,000 with a strict stop loss at 26,050

For new positions in Nifty Bank: 

• Bank Nifty with a stop loss at 53,450 for targets of 53,950 and 54,050; above 54,100, one may hold their long positions with a trailing stop loss
• Aggressive traders can sell Nifty Bank only if it breaks below 53,000 with a strict stop loss at 53,350