Anil Singhvi strategy December 8: 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 20,800-20,850 levels and a strong buy zone at 20,675-20,725 levels on Friday, December 8, the day the RBI is due to announce the decision of its Monetary Policy Committee (MPC) after a bi-monthly review. 

For the Nifty Bank, he expects strong support at 46,500-46,650 levels and a strong buy zone at 46,225-46,425 levels.

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

• Global: Positive

• FII: Negative

• DII: Neutral

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

Singhvi expects a higher zone for the Nifty at 20,940-21,000 levels and a blue-sky zone above the 21,000 mark. For the banking index, he sees a higher zone coming in at 46,925-47,000 levels and a profit-booking zone above the 47,200-47,250 band.

ANIL SINGHVI MARKET STRATEGY 

• FII index longs at 57 per cent vs 55 per cent the previous day
• Nifty put-call ratio (PCR) at 1.34 vs 1.18
• Nifty Bank PCR at 1.03 vs 0.98
• Volatility index India VIX down 7.76 per cent at 12.67

The market wizard suggests keeping a 'buy on dips' strategy on Dalal Street amid stability in crude oil, bond yields and global equities, though he points out that FIIs have booked some profits in the cash as well as futures segments. 

Singhvi expects no change in the benchmark interest rates or policy direction in the outcome of the December MPC review, due at 10 am. 

What can be considered a sign of the end of short-term buying?

Singhvi believes decisive moves below 20,650 and 45,400 in the Nifty and the Nifty Bank will be the sign of a short-term top.

For existing long positions:

• Nifty intraday stop loss at 20,800 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 closing stop loss at 47,050

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; a blue-sky zone above 21,000 

• Aggressive traders sell Nifty near 21,000 with a strict stop loss at 21,050 for targets of 20,965, 20,935, 20,900, 20,850, 20,800 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, 46,925, 46,975, 47,200 and 47,250

• Aggressive traders can sell Nifty Bank in the 47,000-47,200 range with a strict stop loss at 47,300 for targets of 46,925, 46,850, 46,750, 46,650, 46,500 and 46,425

F&O ban update

• New in ban: Balrampur Chini, NALCO

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

• Out of ban: None

Stocks of the day

Buy Orchid Pharma shares with a stop loss at Rs 555 for targets of Rs 575, R 595 and Rs 610

• A strong turnaround story with the new management
• A strong growth outlook for the next three years

Buy IRB Infra shares with a stop loss at Rs 36.75 for targets of Rs 40, Rs 41.5 and Rs 42

• Strong growth in toll collections

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