Anil Singhvi strategy December 21: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 20,900-21,000 levels and a strong buy zone at 20,700-20,850 levels on Thursday, December 21. For the Nifty Bank, he expects support at 46,900-47,100 levels and a strong buy zone in the 46,750-46,850 range.

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

• Global: Negative

• FII: Positive

• DII: Negative

• F&O: Neutral

• Sentiment: Cautious

• Trend: Positive

Singhvi expects a higher zone in the Nifty50 at 21,200-21,325 levels and a strong sell zone at 21,375-21,450 levels. For the banking index, he sees a higher zone emerging at 47,650-47,850 levels and a strong sell zone at 48,000-48,150 levels. 

ANIL SINGHVI MARKET STRATEGY 

• FII index longs at 65 per cent vs 62 per cent the previous day
• Nifty put-call ratio (PCR) at 0.66 vs 1.13
• Nifty Bank PCR at 0.80 vs 0.90
• Volatility index India VIX up four per cent at 14.45

For existing long positions:

• Nifty intraday stop loss at 21,000 and closing stop loss at 20,850

• Nifty Bank intraday stop loss at 47,000 and closing stop loss at 46,800

For existing short positions:

• Nifty intraday stop loss at 21,300 and closing stop loss at 21,450

• Nifty Bank intraday stop loss at 48,000 and closing stop loss at 48,150

For new positions in Nifty:

• Buy Nifty in the 20,850-21,000 range with a stop loss at 20,650 for targets of 21,075, 21,150, 21,200, 21,225, 21,300 and 21,350

• Sell Nifty in the 21,300-21,450 range with a stop loss at 21,525 for targets of 21,200, 21,150, 21,100 and 21,025

• Aggressive traders buy Nifty with a strict stop loss at 21,000 for targets of 21,200, 21,225, 21,300, 21,325, 21,375 and 21,425

• Aggressive traders can sell Nifty with a strict stop loss at 21,250 for targets of 21,100, 21,025, 20,975, 20,925, 20,900 and 20,850

For new positions in Nifty Bank:

• Buy Nifty Bank in the 46,650-46,850 range with a stop loss at 46,500 for targets of 47,000, 47,100, 47,200, 47,275, 47,350 and 47,450

• Sell Nifty Bank in the 47,650-47,850 range with a stop loss at 48,000 for targets of 47,525, 47,450, 47,375, 47,325, 47,275 and 47,200

• Aggressive traders can buy Nifty Bank in the 47,000-47,200 range with a strict stop loss at 46,800 for targets of 47,350, 47,450, 47,575, 47,650, 47,725 and 47,850

• Aggressive traders can sell Nifty Bank with a strict stop loss at 47,700 for targets of 47,325, 47,200, 47,100, 47,000, 46,900, 46,850 and 46,750

Seven reasons behind market weakness

• RBI bars AIFs from investing in risky assets
• Reports suggesting Sebi raids on several market participants 
• Rising COVID-related concerns  
• Slowing pace of FII inflows
• Increase in margin in futures
• Promoters selling through large block deals
• Mixed signals from IPO subscription data

What next?

• Correction likely in two ways: First price-wise, second time-wise
• Must invest in 20,700-20,850 range
• See-saw moves may continue till next week

What should traders do?

• Keep light positions
• Exercise caution till monthly expiry of derivative contracts
• Buy only important support levels
• Trim positions at higher levels

Where to invest?

• IT, chemicals should be first choice
• High-beta midcap and banks to give good opportunities

F&O ban update

• New in ban: India Cements, Ashok Leyland

• Out of ban: Zee Entertainment Enterprises, IRCTC

• Already in ban: Delta Corp, RBL Bank, Indus Tower, Piramal Enterprises, NALCO, SAIL, Manappuram Finance, Balrampur Chini

Stocks of the day

Buy Orchid Pharma shares with a stop loss at Rs 670 for targets of Rs 700, Rs 715 and Rs 730

• Nuvama initiates 'buy' with a target of Rs 900
• New promoters delivering promises
• Benefit from the PLI scheme in API business

Inox India listing today: Here's what to expect 

• The market guru, who had recommended that investors must apply for the issue for a big listing gain and for the long term, expects the stock to debut in the secondary market near Rs 1,100 as against the issue price of Rs 660
• Investors must hold
• Short-term investors can hold with a stop loss at Rs 1,050

Should you subscribe to the Azad Engineering IPO?

Singhvi suggests investors apply for the IPO for a big listing gain and from a long-term perspective. He has pointed out the following key points about the market-bound company: 

Positive

• High entry barrier
• Strong global presence
• Impressive financial track record
• Reasonable valuations

Negative 

• Focus on limited clients

Should you subscribe to the Innova Captab IPO?

Singhvi suggests investors apply for the Innova Captab IPO for a small listing gain and for the long term. 

Positive

• Experienced promoters
• Strong growth record of CDMO business
• New unit in Jammu to fuel growth
• Reasonable valuations

Negative

• Huge competition
• Lower margins than peers

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