Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects a strong buy zone for the headline Nifty50 index at 23,900-24,075 levels on Monday, November 25. For the Nifty Bank, he expects a strong buy zone at 51,150-51,350 levels.

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

  • Global: Positive
  • FII: Positive
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Positive
  • Trend: Neutral
  • FII long positions at 31 per cent vs 25 per cent before Friday's session
  • Nifty put-call ratio (PCR) at 1.19 vs 0.94
  • Nifty Bank PCR at 1.15 vs 0.91
  • Volatility index India VIX up 1 per cent at 16.09

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The market wizard sees a higher zone for the headline index at 24,250-24,350 levels and a profit-booking zone at 24,400-24,525 levels.

For the banking index, he sees a higher zone at 51,825-52,000 levels and a profit-booking zone at 52,100-52,325 levels.

What will be the likely impact of FII activity?

  • Signs of an end to the FII outflows that began on September 26
  • FII index long positions quite less at 25 per cent
  • Buying to the tune of Rs 12,395 crore in stock futures is quite positive
  • In the cash segment, selling of Rs 1278 crre is negligible
  • Typically, FIIs buy in F&O before starting to buy in the cash segment 

EDITOR’S TAKE 

  • MArket mood is much better thanks to Friday's sharp recovery
  • Major triggers of buying today
  • We recommended buying at fresh buying at the closing
  • In the current leg of recovery, the next targets for Nifty50 and Nifty Bank are placed at 24,400-24,500 and 52,200-52,500 levels respectively 
  • Buying to gather steam if Nifty50 and Niffty Bank close above 24,550 and 52,600 levels respectively
  • Buy at key support levels in case of a gap-up start to the day
  • Trim your positions as soon as they attain favourable levels
  • Think afresh what to buy next

Stocks and sectors to focus on

  • Capex is likely to boost infrastructure and capital goods
  • Buy L&T, ABB, Siemens and any other stock in the capital goods space
  • PSU stocks set to stage strong moves; consider avering in the stocks that have been battered heavily
  • Strong buying interest expected in power stocks; REC and PFC top favourites
  • After correction, stocks of PSU banks that posted strong results are expected to stage strong moves
  • Short-covering moves expected in realty stocks
  • After its recent fall, RIL is set to support Nifty50 now
  • Three largecap stocks remain among top favourites: L&T, Trent and M&M

ANIL SINGHVI MARKET STRATEGY

For existing long positions:

  • Nifty intraday and closing stop loss at 23,950
  • Nifty Bank intraday and closing stop loss at 51,250

For existing short positions:

  • Nifty intraday and closing stop loss at 24,075
  • Nifty Bank intraday and closing stop loss at 51,500

For new positions in Nifty50:

  • Buy Nifty with a stop loss at 24,000 for targets of 24,250, 24,300, 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 24,550 for targets of 24,350, 24,300, 24,250, 24,200, 24,175 and 24,075
  • Cut all shorts and create long positions if index closes above 24,550 

For new positions in Nifty Bank:

  • Buy Nifty Bank with a stop loss at 51,125 for targets of 51,675, 51,800, 51,875, 52,000, 52,100, 52,175, 52,325 and 52,500
  • Aggressive traders can sell Nifty Bank in the 52,175-52,325 range with a strict stop loss at 52,500 for targets of 52,000, 51,925, 51,875, 51,800, 51,675 and 51,575

Stocks in F&O ban:

  • Out of ban: AB Fashion
  • Already in ban: NALCO, Adani Enterprises, IGL, GNFC, Aarti Industries, Hindustan Copper, Granules India
  • New in ban: None

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