Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 21,525-21,575 levels and a strong buy zone at 21,400-21,465 levels on Saturday, January 20. For the Nifty Bank, he expects support to come in at 45,425-45,550 and a strong base at 44,950-45,150 levels.

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

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

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Singhvi expects a higher zone for the Nifty50 at 21,675-21,750 and a strong sell zone at 21,775-21,850 levels. For the banking index, he expects a higher zone at 46,075-46,250 and a profit-booking zone at 46,300-46,475 levels. 

ANIL SINGHVI MARKET STRATEGY 

The market wizard expects plenty of opportunities for investors in the midcap and smallcap segments, following Friday's market recovery, on the back of two straight sessions of gains on Wall Street, which emerged despite FII outflows amounting to Rs 20,000 crore in two days.

He believes Saturday will be a make-or-break session for the Nifty Bank, amid light positions in the banking index as well as the Nifty50 following the respective expiries of their weekly derivatives contracts. 

ICICI Bank, Kotak Mahindra Bank and IDFC First Bank results, due on Saturday, will dictate market direction, he says.

Singhvi suggests focusing on the Nifty50 on Saturday as well, instead of the banking index, and profit-taking at higher levels. 

  • FII index longs at 47 per cent vs 49 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.96 vs 0.94
  • Nifty PCR Bank at 0.59 vs 0.67
  • Volatility index India VIX down 1.5 per cent at 13.88

For existing long positions:

  • Nifty intraday stop loss at 21,525 and closing stop loss at 21,450
  • Nifty Bank intraday and closing stop loss at 45,400

For existing short positions:

  • Nifty intraday and closing stop loss at 21,700
  • Nifty Bank intraday and closing stop loss at 46,250

For new positions in Nifty:

  • Buy Nifty with a stop loss at 21,525 for targets of 21,675, 21,725, 21,750, 21,775, 21,800 and 21,850
  • Sell Nifty in the 21,725-21,850 range with a stop loss at 21,900 for targets of 21,675, 21,650, 21,625, 21,575 and 21,525

For new positions in Nifty Bank:

  • Aggressive traders can buy Nifty Bank in the 45,425-45,550 range with a strict stop loss at 45,200 for targets of 45,800, 46,000, 46,075, 46,175, 46,250, 46,375 and 46,475
  • Aggressive traders can sell Nifty Bank in the 46,075-46,250 range with a strict stop loss at 46,500 for targets of 46,000, 45,800, 45,725, 45,575 and 45,425

F&O ban update

  • New in ban: OFSS, RBL Bank
  • Out of ban: Ashok Leyland, Metropolis, Bandhan Bank, PVR INOX
  • Already in ban: Balrampur Chini, ABFRL, Delta Corp, IEX, NALCO, Polycab India, SAIL, Zee Entertainment Enterprises, Hindustan Copper

RESULTS REVIEWS

HUL

  • Results below estimates on all parameters
  • Weak margin due to higher ad expenses
  • Growth outlook still uncertain
  • Futures have support at Rs 2,530 and a higher level at Rs 2,600

Reliance 

  • Mixed results
  • Margins better than estimates
  • Retail and gas exploration performance better, Telecom Inline

Stocks of the day

Buy Paytm shares with a stop loss at Rs 755 for targets of Rs 780 and Rs 800

  • Results better than estimates
  • CLSA has upgraded the stock with a target of Rs 960

Buy Sigachi Industries shares with a stop loss at Rs 72 for targets of Rs 80, Rs 85 and Rs 100

  • Results better than estimates
  • Strong operational performance

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.