Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 21,425-21,500 levels and a strong buy zone at 21,350-21,400 levels on Wednesday, January 10. For the Nifty Bank, he expects support at 46,925-47,150 levels and a strong base at 46,750-46,850 levels.

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

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

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Singhvi expects a higher zone for the Nifty50 at 21,600-21,675 levels and a strong sell zone at 21,700-21,775 levels. For the banking index, he sees a higher zone emerging at 47,500-47,650 levels and a profit-booking zone at 47,725-47,850 levels. 

ANIL SINGHVI MARKET STRATEGY 

  • FII index longs at 64 per cent vs 62 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.88 vs 0.84
  • Nifty Bank PCR at 0.55 vs 0.57
  • Volatility index India VIX down 1.5 per cent at 13.26 

The market wizard points out the presence of high volatility on Dalal Street as well as Wall Street and mixed numbers in terms of FII and DII fund flows. 

He expects the Nifty50 to move within a range of 21,500-21,800, and a big move to emerge beyond 21,450 and 21,850 levels on either side. He suggests buying at key support levels in the Nifty and profit-taking at higher levels.

He highlights that the Nifty Bank looks oversold with its PCR at 0.55, and warrants short-covering from lower levels. It will be a "make or break" session for the banking index, with the last significant support placed at 46,900-47,200 levels. A negative close will signal the risk of further downside, says Singhvi. 

For existing long positions:

  • Nifty intraday stop loss at 21,450 and closing stop loss at 21,500
  • Nifty Bank intraday stop loss at 46,900 and closing stop loss at 47,150

For existing short positions:

  • Nifty intraday and closing stop loss at 21,725
  • Nifty Bank intraday and closing stop loss at 48,000

For new positions in Nifty:

  • Sell Nifty in the 21,625-21,725 range with a stop loss at 21,800 for targets of 21,550, 21,525, 21,500, 21,475, 21,450 and 21,400
  • Aggressive traders can buy Nifty in the 21,350-21,450 range with a strict stop loss at 21,250 for targets of 21,500, 21,550, 21,600, 21,625, 21,650 and 21,675

For new positions in Nifty Bank:

  • 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, 47,250, 47,150 and 47,000
  • Aggressive traders can buy Nifty Bank in the 46,925-47,150 range with a strict stop loss at 46,750 for targets of 47,250, 47,375, 47,450, 47,500, 47,650, 47,725 and 47,850

F&O ban update

  • Out of ban: Zee Entertainment Enterprises
  • Already in ban: Hindustan Copper, Bandhan Bank, Piramal Enterprises, Chambal Fertilisers, India Cements, GNFC, Escorts, NALCO, Delta Corp, IEX, SAIL, Balrampur Chini
  • New in ban: None

Stock of the day

Sell ONGC futures with a stop loss at Rs 223 for targets of Rs 210 and Rs 204

  • Crude sustaining below $80 is a negative
  • Goldman Sachs has double-downgraded the stock to 'sell' from 'neutral'

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