Anil Singhvi Market Strategy December 3: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support to emerge at 24,125-24,200 levels and a strong buy zone at 23,875-24,000 levels for the headline Nifty50 index on Tuesday, December 3. For the Nifty Bank, he expects support at 51,675-51,775 levels and a strong buy zone at 51,300-51,475 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: Neutral
• FII long positions unchanged at 33 per cent as before Monday's session
• Nifty put-call ratio (PCR) at 1.22 vs 1.08
• Nifty Bank PCR at 0.86 vs 0.85
• Volatility index India VIX up two per cent at 14.70

The market wizard sees a higher zone for the headline index at 24,350-24,500 levels and a strong sell zone at 24,575-24,675 levels.

For the banking index, he sees a higher zone at 52,325-52,475 levels and a profit-booking zone at 52,550-52,750 levels.

Are the latest GST rate revisions good or bad?

• There is no need for a GST rate revision at the moment
• It is not wise to hike GST in the name of premium products 
• What was luxury 5-7 years ago is perhaps a necessity now
• Signs of slowing economic growth emerged in Q2 results
• GST and direct tax collections strong
• In such a scenario, any hike in GST rates will be negative
• Policymakers should focus on boosting consumption and growth
• Market sentiment likely to be affected 
• The development is set to impact manufacturers of cigarettes, aerated drinks and expensive clothing

Today's Positive Signals

• Wall Street at a record high
• FII outflows have decreased drastically
• Despite 7-quarter low GDP growth rate, Monday's recovery aided sentiment 
• Strong buying by domestic funds
• Strong sentiment in midcap and smallcap stocks for seven sessions in a row

Today's Negative Signals

• Proposed higher GST rates fueling negative sentiment
• Rupee at lifetime low vs dollar
• Rising pressure emanating from QIPs, IPOs and selling by promoters

EDITOR’S TAKE

• Nifty50 will once again attempt to reach 24,350
• Once 24,350 is out of the way, the next expected resistance stands at 24,500
• In Nifty Bank, the 52,500-52,750 band marks the upper end of the resistance zone 
• Focus should remain on midcap and smallcap stocks for now
• It is an opportune time to buy stocks staging gap-down openings in anticipation of higher GST rates 

ANIL SINGHVI MARKET STRATEGY

For existing long positions:

• Nifty intraday and closing stop loss at 24,000
• Nifty Bank intraday and closing stop loss at 51,650

For existing short positions:

• Nifty intraday and closing stop loss at 24,375
• Nifty Bank intraday and closing stop loss at 52,350

For new positions in Nifty50:

• The best range to buy Nifty is 24,000-24,150 with a stop loss at 23,875 for targets of 24,200, 24,275, 24,350, 24,400, 24,435, 24,465 and 24,500
• Aggressive traders can sell Nifty in the 24,400-24,500 range with a strict stop loss at 24,575 for targets of 24,350, 24,300, 24,275, 24,225, 24,175 and 24,125  

For new positions in Nifty Bank:

• Aggressive traders can buy Nifty Bank in the 51,675-51,775 range with a strict stop loss at 51,550 for targets of 51,900, 52,000, 52,100, 52,175, 52,300 and 52,475
• Aggressive traders can sell Nifty Bank at 52,500 and 52,750 with a strict stop loss at 52,850 for targets of 52,325, 52,200, 52,100, 52,025, 51,900 and 51,750

Stocks in F&O Ban ​

• New in ban: RBL Bank
• Out of ban: None
• Already in ban: None

Stock of the Day

Buy Protein eGov Tech shares for targets of Rs 1,790, Rs 1,820 and Rs 1,850 with a stop loss at Rs 1,740 

• The company's quarterly revenue stands at about Rs 200 crore
• Annual revenue at Rs 880 crore
• The company has received a Rs 161 crore order from CERSAI; the order is sizable for the company

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