Anil Singhvi strategy December 6: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees strong support for the headline Nifty50 index emerging at 20,675-20,725 levels and a blue-sky zone above 20,900 on Wednesday, December 6. For the Nifty Bank, he expects strong support at 46,450-46,650 levels.

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

• Global: Neutral

• FII: Positive

• DII: Negative

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

Singhvi expects some profit-booking in Nifty50 to take place near 21,000, and for the banking index, he sees a higher level coming in at 47,225 and a blue-sky zone above 47,250.  

ANIL SINGHVI MARKET STRATEGY 

The market wizard recommends a 'buy on dips' strategy on Dalal Street from the first support level itself, amid FII inflows to the tune of Rs 8,000 crore in the segments of cash, and index and stock futures, and a trend of low crude oil prices. He also points out stability across global markets with a decline of 4.2 per cent in bond yields. 

He expects buying across largecap, midcap and smallcap segments. 

Where to book profit?

Singhvi believes the 21,000 level is apt for some profit-booking.

When will buying stop in the short term?

A slide below 20,650 on the Nifty and 45,400 on the Nifty Bank will be the sign of a short-term top in the market, he adds. 

• FII index longs at 49 per cent vs 44 per cent the previous day
• Nifty put-call ratio (PCR) at 1.37 vs 1.39
• Nifty Bank PCR at 1.13 vs 1.66
• Volatility index India VIX up 3.5 per cent at 13.46

For existing long positions:

• Nifty intraday and closing stop loss at 20,675

• Nifty Bank intraday stop loss at 46,650 and closing stop loss at 46,400

For existing short positions:

• Nifty intraday and closing stop loss at 20,900

• Nifty Bank intraday and closing stop loss at 47,250

For new positions in Nifty:

• Buy Nifty with a stop loss at 20,675 for targets of 20,900, 20,975; a blue-sky zone above 21,000 

• Aggressive traders can sell Nifty near 21,000 with a strict stop loss at 21,050 for targets of 20,900, 20,850 and 20,725

• Alternatively, if Nifty breaks below 20,650, sell with a stop loss at 20,750 for targets of 20,600 and 20,525

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 46,450-46,650 with a stop loss at 46,400 for targets of 46,800, 46,975 and 47,200

• Aggressive traders can buy Nifty Bank with a strict stop loss at 46,650 for a target of 47,200; a blue-sky zone above 47,250 which can be used with a trailing stop loss

• Aggressive traders can sell Nifty Bank near 47,200 with a strict stop loss at 47,300 for targets of 47,000, 46,800, 46,650 and 46,500

• Alternatively, if Nifty Bank breaks below 46,400, one can sell with a stop loss at 46,675 for targets of 46,200 and 46,000

F&O ban update

• Already in ban: Delta Corp, India Cements, Indiabulls Housing Finance, Zee Entertainment Enterprises

• New in ban: None

• Out of ban: None

Stocks of the day

Buy Asian Paints futures with a stop loss at Rs 3,200 for targets of Rs 3,285, Rs 3,320 and Rs 3,345

• Benefit from lower crude prices
• Macquarie has a 'buy' rating with a target of Rs 3,800

Sell Bajaj Auto futures with a stop loss at Rs 6,230 for targets of Rs 6,090, Rs 6,050 and Rs 6,020

• CLSA downgraded two-wheeler stocks
• It double downgraded Bajaj Auto though with a raised target of Rs 6,382 instead of Rs 5,670 earlier 

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