Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the Nifty index coming in at 19,565-19,600 levels and a strong buy zone at 19,435-19,500 levels on Monday, July 24. For the Nifty Bank, he expects support at 45,550-45,700 levels and a strong buy zone at 45,300-45,450 levels.

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

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

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Singhvi expects a higher zone in the Nifty at 19,750-19,815 levels and a strong sell zone at 19,835-19,900 levels. For the banking index, he sees a higher zone at 46,175-46,250 levels and a profit-booking zone at 46,375-46,500 levels. 

ANIL SINGHVI MARKET STRATEGY

Singhvi expects profit-booking in banking stocks at higher levels despite strong quarterly numbers from private sector lenders. Still, he expects the Nifty Bank to outperform the Nifty. 

He points out that large corporates including Reliance Industries reported a weak set of results. The mood in the market is sombre owing to foreign institutional outflows and weakness in Reliance Industries as well as IT companies, he says. 

He sees weakness in the market to worsen once the Nifty and the Nifty Bank close below levels of 19,550 and 45,400 respectively. 

  • FII index longs at 68 per cent vs 71 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.91 vs 1.44
  • Nifty Bank PCR at 1.07 vs 1.27
  • Fear index India VIX down 2.5 per cent at 11.49

For existing long positions:

  • Nifty intraday stop loss at 19,675 and closing stop loss at 19,550
  • Nifty Bank intraday stop loss at 45,900 and closing stop loss at 45,400

For existing short positions:

  • Nifty intraday and closing stop loss at 20,000
  • Nifty Bank intraday stop loss at 46,500 and closing stop loss at 46,200

For new positions in Nifty:

  • Sell Nifty with a stop loss at 19,900 for targets of 19,700, 19,600, 19,565, 19,525, 19,500 and 19,435
  • Aggressive traders can buy Nifty in the 19,500-19,565 range with a strict stop loss at 19,375 for targets of 19,600, 19,700, 19,750, 19,815, 19,835 and 19,875

For new positions in Nifty Bank:

  • Buy Nifty Bank in the 45,550-45,700 range with a stop loss at 45,400 for targets of 45,900, 46,000, 46,075, 46,175, 46,250 and 46,350
  • Sell Nifty Bank in the 46,175-46,350 range with a stop loss at 46,500 for targets of 46,075, 45,925, 45,700, 45,650, 45,550, 45,450 and 45,400

Stocks in F&O ban:

  • Out of ban: RBL Bank
  • Already in ban: Balrampur Chini, PNB, L&T Finance, Delta Corp, Manappuram Finance, Indiabulls Housing Finance
  • New In ban: None

Stocks of the day: 

Buy CreditAccess Grameen with a stop loss at Rs 1,300 for targets of Rs 1,340, Rs 1,355, Rs 1,375 and Rs 1,395

  • Strong performance on all parameters

Buy DLF futures with a stop loss at Rs 490 for targets of Rs 510 and Rs 520

  • Stable results but re-entry in Mumbai market a big positive

Results review:

ICICI Bank 

  • Best results in the whole banking sector
  • Asset quality and 18 per cent deposit growth best is nine years
  • Restructure book lowest in 10 quarters
  • On gap-up opening, profit-booking expected
  • Higher range at Rs 1,025-1,040 levels

Kotak Mahindra Bank 

  • Strong results
  • 22 per cent deposit growth best in 16 quarters but CASA ratio lowest in 22 quarters
  • Profit-booking expected in the Rs 1,990-2,010 range

RBL Bank

  • Strong performance but the stock has already run sharply

AU Small Finance Bank

  • Weakest results among private sector banks
  • Stock may fall 3-5%

Paytm

  • Strong operational performance
  • Company to become cash flow positive by year-end
  • Profit-booking expected at higher levels

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