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

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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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