Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 25,050-25,150 levels and a strong buy zone at 24,875-25,000 levels on Wednesday, September 4. 

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For the Nifty Bank, he expects support to come in at 51,150-51,300 levels and a stronger support zone at 50,850-51,000 levels.

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

  • Global: Negative
  • FII: Positive
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Cautious
  • Trend: Positive
  • FII long positions flat at 70 per cent as the previous day
  • Nifty put-call ratio (PCR) at 1.2 vs 1.18
  • Nifty Bank PCR at 1.07 vs 0.89
  • Volatility index India VIX down 1.5 per cent at 13.84

The market wizard sees a higher zone at 25,200-25,275 levels and a "blue-sky zone" above 25,350 for the headline index. 

For the banking index, he sees a higher zone coming in at 51,675-51,750 levels and a profit-booking zone at 51,875-51,950 levels. 

How to trade Nifty Bank and midcap & smallcap stocks

  • Keep positions light
  • Buy slowly and in small quantities; focus on quality stocks with larger corrections
  • It is a make-or-break session for Nifty Bank today
  • The banking index staged a good breaout on Tuesday
  • Weekly F&O expiry due today
  • Investors should maintain a 'wait and watch' approach
  • Weekly expiry should not be below 51,150 
  • Nifty Bank must remain strong in order to avoid a significant fall in the market 

MARKET STRATEGY 

For existing long positions:

  • Nifty intraday stop loss at 25,150 and closing stop loss at 24,950
  • Nifty Bank intraday stop loss at 51,200 and closing stop loss at 50,900

For existing short positions:

  • Nifty intraday and closing stop loss at 25,350
  • Nifty Bank intraday and closing stop loss at 51,750

For new positions in Nifty50:

  • Sell Nifty with a stop loss at 25,350 for targets of 25,150, 25,125, 25,075, 25,050, 25,000 and 24,975 
  • Aggressive traders can buy in the 24,975-25,050 range with a strict stop loss at 24,900 for targets of 25,125, 25,150, 25,200, 25,235 and 25,275

For new positions in Nifty Bank: 

  • Aggressive traders can sell Nifty Bank with a strict stop loss at 51,800 for targets of 51,450, 51,350, 51,300, 51,250, 51,150, 51,075 and 51,000
  • Aggressive traders can buy Nifty Bank in the 51,000-51,150 range with a strict stop loss at 50,800 for targets of 51,250, 51,300, 51,350, 51,425, 51,575 and 51,675 
Stocks in F&O ban
  • New in ban: AB Fashion
  • Already in ban: Balrampur Chini, Hindustan Copper
  • Out of ban: None

Why did US markets fall?

  • August manufacturing PMI reading slightly below analysts' expectations
  • 10-year bond yield falls to near 3.8 per cent
  • Likelihood of slowing growth
  • Weakness in Nasdaq due to IT and semiconductor stocks
  • Nvidia stock has plunged 9.5 per cent

How fearful are investors of a fall in US markets?

  • No major reason for Dow to fall
  • Index made highs on four occasions last week
  • Market needs an excuse to fall after one-way rally
  • Heavy selling in Nasdaq due to Nvidia; some more downside possible 
  • September 18 Fed meeting to determine market direction
  • Fear about a recession will lead to sharper and more frequent rate cuts than anticipated earlier

Will it impact Dalal Street?

  • No fear of a recession in India
  • Selling in Nvidia not dangerous for Indian markets
  • Some weakness possible owing to a weakening global sentiment
  • No need to panic as long as Nifty50 and Nifty Bank hold 24,950 and 50,900 levels on a closing basis
  • Investors should view the situation as running correction
  • Metal and IT stocks likely to take the biggest hit; investors should exercise caution in these spaces

Stocks of the Day

Sell SAIL futures for targets of Rs 127 and Rs 125 with a stop loss at Rs 135 

  • Metals weak globally

Sell Tech Mahindra futures for targets of Rs 1,635, Rs 1,620 and Rs 1,610 with a stop loss at Rs 1,670

  • IT stocks remain under pressure due to global reasons 

Sell JSW Steel futures with a stop loss at Rs 946 for targets of Rs 921, Rs 911 and Rs 901

  • Metals weak in global markets for 4th consecutive day

Sell LTTS futures with a stop loss at Rs 5,800 for targets of Rs 5,700, Rs 5,645 and Rs 5,630

  • Weakness in IT stocks due to US slowdown fears

Sell JSW Steel futures with a stop loss at Rs 946 for targets of Rs 920, Rs 911 and Rs 901

  • Metals weak in global markets for 4th consecutive day

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