Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees strong support for the headline Nifty50 index emerging at 20,800-20,850 levels and a 
strong buy zone at 20,675-20,725 levels on Thursday, December 7. 

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For the Nifty Bank, he expects strong support at 46,450-46,650 levels and a strong buy zone at 46,225-46,375 levels.

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

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

Singhvi expects a higher zone for the Nifty at 20,960-21,000 and a blue-sky zone above 21,000. For the banking index, he sees a higher zone coming in at 47,000-47,225 levels and a blue-sky zone above 47,300.

ANIL SINGHVI MARKET STRATEGY 

The market wizard recommends using a 'buy on dips' strategy at key support levels on Dalal Street, amid stable global equities, bond yields below 4.1 per cent, and crude oil near $74 a dollar, which is a big positive for India. Although FII buying is losing momentum, DII inflows stand at a strong Rs 1,400 crore, he adds. 

  • FII index longs at 55 per cent vs 49 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.18 vs 1.37
  • Nifty Bank PCR at 0.98 vs 1.13
  • Volatility index India VIX up 2.1 per cent at 13.74

Where to book profit?

Singhvi suggests some profit-booking at 21,000 and 47,000-47,200 in Nifty and Nifty50, respectively.

What should be considered a sign of short-term buying on Dalal Street?

The indices stabilising below 20,650 and 45,400 will be the sign of a short-term top, he says. 

For existing long positions:

  • Nifty intraday stop loss at 20,850 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 21,025
  • Nifty Bank intraday stop loss at 47,300 and closing stop loss at 47,025

For new positions in Nifty:

  • The best range to buy Nifty is 20,700-20,850 with a stop loss at 20,650 for targets of 20,900, 20,935, 20,960, 20,990; levels above 21,000 will be a blue-sky zone
  • Aggressive traders can sell Nifty with a strict stop loss at 21,025 for targets of 20,900, 20,850, 20,800, 20,725 and 20,700

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 46,450-46,650 with a stop loss at 46,350 for targets of 46,750, 46,825, 46,975, 47,200; a blue-sky zone exists above 47,300 
  • The best range to sell Nifty Bank is 46,975-47,200 with a stop loss at 47,300 for targets of 46,850, 46,750, 46,650, 46,500 and 46,425

F&O ban update

  • New in ban: SAIL
  • Already in ban: Delta Corp, India Cements, Indiabulls Housing Finance, Zee Entertainment Enterprises
  • Out of ban: None

Stocks of the day

Sell Balrampur Chini futures with a stop loss at Rs 450 for targets of Rs 415, Rs 410 and Rs 395

  • Raw sugar prices in global markets down seven per cent to a five-month low
  • Ethanol business under threat due to change in government policy

Paytm

  • Big negative for Paytm in conference call highlights
  • The company will cut down on disbursing loans under Rs 50,000 
  • Goldman Sachs, CLSA, JP Morgan have downgraded the stock

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