Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees a strong buy zone in the headline Nifty index at 19,365-19,425 levels on Thursday, August 24. For the Nifty Bank, he expects a strong buy zone at 44,000-44,200 levels.

Here's how Anil Singhvi sums up the market setup:

  • Global: Positive
  • FII: Positive
  • DII: Neutral
  • F&O: Neutral
  • Sentiment: Positive
  • Trend: Neutral

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Singhvi sees a higher zone in the Nifty at 19,500-19,565 levels and a profit-booking zone at 19,600-19,650 levels. For the banking index, he sees a higher zone at 44,725-44,875 levels and a profit-booking zone at 44,925-45,075 levels.

ANIL SINGHVI MARKET STRATEGY

Singhvi expects positive moves on Wall Street, and a softening of US bonds and the dollar to support the domestic market amid a pause in persistent FII outflows. The Nifty Bank signalled a breakout on Wednesday in a sign of leadership on Dalal Street, he pointed out.

He expects strong support for the Nifty and the Nifty Bank at 19,250-19,325 and 43,600-43,800 levels, and the next targets at 19,600-19,800 and 44,800-45,000 respectively. 

  • FII index long positions at 45 per cent vs 43 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.05 vs 0.92
  • Nifty Bank PCR at 1.27 vs 0.83
  • Fear index India VIX unchanged at 11.73

For existing long positions:

  • Nifty intraday stop loss at 19,350 and closing stop loss at 19,300
  • Nifty Bank intraday stop loss at 44,200 and closing stop loss at 44,000

For existing short positions:

  • Nifty intraday and closing stop loss at 19,550
  • Nifty Bank intraday and closing stop loss at 44,625

For new positions in Nifty:

  • Buy Nifty with a stop loss at 19,350 for targets of 19,500, 19,535, 19,565, 19,600, 19,625, 19,650 and 19,700
  • For aggressive traders, the best range to sell Nifty is 19,565-19,650 with a strict stop loss at 19,725 for targets of 19,535, 19,500, 19,475, 19,445, 19,425 and 19,400

For new positions in Nifty Bank:

  • Buy Nifty Bank with a stop loss at 44,200 for targets of 44,575, 44,625, 44,725, 44,775, 44,825, 44,875, 44,925 and 44,975
  • For aggressive traders, the best range to sell Nifty Bank is 44,800-45,000 with a strict stop loss at 45,200 for targets of 44,725, 44,625, 44,575, 44,525, 44,475 and 44,400

Stocks in F&O ban:

  • New in ban: Sun TV
  • Already in ban: BHEL, Escorts, Metropolis, Delta Corp, GNFC, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram, PNB
  • Out of ban: SAIL, ZEEL

Stock of the day: 

Sell Coforge futures with a stop loss at Rs 5,000 for targets of Rs 4,715, Rs 4,670 and Rs 4,605

  • Baring PE selling entire 26.63 per cent stake
  • Don’t rush to buy even after the block deal

Vishnu Prakash R Punglia IPO review:

Singhvi recommends applying for the issue for big listing gains. 

Positives:

  • Experienced promoters
  • Impressive growth record
  • Strong growth outlook with a healthy order book
  • Reasonable valuation leaves scope for good listing gains

Negatives:

  • Highly competitive business with low entry barriers
  • Focus only on Rajasthan-based irrigation projects
  • Cash flow slightly negative for last two years

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