Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty index coming in at 19,325-19,365 levels and a strong buy zone at 19,235-19,300 levels on Wednesday, August 30. For the Nifty Bank, he expects support at 44,350-44,425 levels and 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: Neutral
  • Trend: Neutral

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Singhvi sees a higher zone in the Nifty at 19,425-19,465 levels and a strong sell zone at 19,500-19,575 levels. For the banking index, he sees a higher zone at 44,675-44,825 levels and a profit-booking zone at 44,925-45,075 levels.

ANIL SINGHVI MARKET STRATEGY

Singhvi believes the market is gearing up for a breakout from its current trading range, as predicted earlier, amid positive signals from Wall Street, the dollar index and bond yields. He suggests traders adopt a 'buy on dips' strategy.

One can expect a breakout if the Nifty and the Nifty Bank take out 19,550 and 45,000 levels on a closing basis, and further weakness in the market if they close below 19,200 and 43,850 levels respectively, he says. 

  • FII index long positions at 45 per cent vs 43 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.97 vs 0.99
  • Nifty Bank PCR at 0.91 vs 1.06
  • Fear index India VIX down 1.5 per cent at 12.23

For existing long positions:

  • Nifty intraday stop loss at 19,300 and closing stop loss at 19,250
  • Nifty Bank intraday stop loss at 44,200 and closing stop loss at 44,000

For existing short positions:

  • Nifty intraday stop loss at 19,400 and closing stop loss at 19,500
  • Nifty Bank intraday and closing stop loss at 44,725

For new positions in Nifty:

  • Buy Nifty with a stop loss at 19,300 for targets of 19,400, 19,425, 19,465, 19,500, 19,535 and 19,575
  • Aggressive traders can sell Nifty in the 19,465-19,575 range with a strict stop loss at 19,650 for targets of 19,425, 19,400, 19,365, 19,340 and 19,300

For new positions in Nifty Bank:

  • Buy Nifty Bank with a stop loss at 44,350 for targets of 44,625, 44,675, 44,725, 44,775, 44,825, 44,875, 44,925 and 45,000
  • Aggressive traders can sell Nifty Bank in the 44,825-44,975 range with a strict stop loss at 45,100 for targets of 44,775, 44,725, 44,675, 44,625, 44,575, 44,525 and 44,425

Stocks in F&O ban:

  • Out of ban: India Cements, BHEL
  • Already in ban: Indiabulls Housing Finance, Escorts, GMR Airports, Hindustan Copper, Manappuram Finance, RBL Bank, Sun TV
  • New in ban: None

Stocks of the day: 

The best range to buy BHEL futures is Rs 109-111 with a stop loss at 107 for targets of Rs 116, Rs 118 and Rs 120

  • Defence and capital goods stocks in focus

Buy Zomato shares after a likely block deal with a stop loss at Rs 90 for targets of Rs 98 and Rs 100

  • Targets for investors: Rs 115 and Rs 120

Rishabh Instruments IPO preview:

Singhvi recommends applying for the issue for small listing gains and for the long term. He identified the following key points about the primary market-bound company: 

Positive:

  • Experienced and clean promoters
  • Strong financial growth record
  • Strong anchor book
  • Reasonable valuations

Negative:

  • Plants in Polland and China
  • Almost 70 per cent revenue from exports

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