Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty index emerging at 19,225-19,275 levels and a strong buy zone at 19,125-19,175 levels on Monday, November 6. For the Nifty Bank, he expects support at 43,225-43,325 levels and a strong buy zone at 43,025-43,150 levels.

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

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

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Singhvi expects a higher zone for the Nifty50 at 19,340-19,385 levels and a profit-booking zone at 19,435-19,485 levels. For the banking index, he sees a higher zone coming in at 43,725-43,875 levels and a profit-booking sell zone at 43,950-44,050 levels.  

ANIL SINGHVI MARKET STRATEGY

Singhvi suggests buying at the very first support level in case of some weakness after a strong gap-up start on Dalal Street, amid strong global as well as domestic signals with decreasing FII outflows hinting at the return of buying. He recommends continuing with a 'buy on dips' strategy till Diwali as he expects midcap and smallcap stocks to strengthen further. 

The market wizard sees strong support for the Nifty and the Nifty Bank coming in at 19,135-19,235 and 43,000-43,150 levels, and the possibility of a recovery in the indices continuing all the way till 19,450-19,550 and 43,875-44,050 levels, respectively. 

  • FII index long positions at 18 per cent vs 16 per cent the previous day
  • Nifty put-call ratio (PCR) at 0.96 vs 1.01
  • Nifty Bank PCR at 1.01 vs 0.8
  • Fear index India VIX down 1.73 per cent at 10.88

For existing long positions:

  • Nifty intraday stop loss at 19,200 and closing stop loss at 19,125
  • Nifty Bank intraday and closing stop loss at 43,000

For existing short positions:

  • Nifty intraday and closing stop loss at 19,300
  • Nifty Bank intraday and closing stop loss at 43,550

For new positions in Nifty:

  • Buy Nifty with a stop loss at 19,200 for targets of 19,275, 19,340, 19,365, 19,385, 19,435, 19,465 and 19,485
  • Aggressive traders can sell Nifty in the 19,385-19,485 range with a strict stop loss at 19,550 for targets of 19,365, 19,340, 19,275, 19,250 and 19,215

For new positions in Nifty Bank:

  • Buy Nifty Bank with a stop loss at 43,200 for targets of 43,550, 43,725, 43,875, 43,950, 44,000 and 44,050
  • Aggressive traders can sell Nifty Bank in the 43,725-43,875 range with a strict stop loss at 44,050 for targets of 43,550, 43,425, 43,325, 43,275 and 43,225

F&O ban update

  • Already in ban: GNFC
  • New in ban: None
  • Out of ban: None

Stocks of the day:

Buy Vedanta futures with a stop loss at Rs 230 for targets of Rs 237 and Rs 242

  • Operationally very strong numbers
  • Highest ever quarterly revenue
  • Second highest quarterly EBITDA
  • Net debt reduced by Rs 1420 crore
  • Loss due to exceptional expenses only

Buy Aarti Industries futures with a stop loss at Rs 453 for targets of Rs 472, Rs 479 and Rs 484

  • Operationally strong results
  • Early signs of a recovery visible
  • Margins strong at 16 per cent

Buy JK Cement futures with a stop loss at Rs 3,100 for targets of Rs 3,190, Rs 3,225 and Rs 3,240

  • Best results in the cement industry
  • Strong operational performance

Sell BoB futures with a strict stop loss at Rs 207 for targets of Rs 200, Rs 197 and Rs 194

  • Not great results, NIMs below estimate
  • Slippages and provisioning increased
  • Book profit if opens up positive

Buy Titan futures with a stop loss at Rs 3,228 for targets of Rs 3,310, Rs 3,355 and Rs 3,410

  • Strong upgrade by CLSA post-results
  • Target raised from Rs 3,540 to Rs 3,948

Result review:

SBI

  • Strong results
  • Improved asset quality
  • Management confident of 14 per cent growth across all segments
  • Margins may reduce in coming quarters
  • Huge provisioning for wage revision
  • Don’t buy on a gap-up opening; instead, book profit

Cello World listing preview:

The stock is expected to list in the Rs 825-850 range against the issue price of Rs 648

Singhvi, who earlier advised subscribing to the issue for small listing gains and for the long term, suggests investors hold the stock with a stop loss at Rs 775.

ESAF Small Finance Bank IPO preview:

Singhvi suggests subscribing to the issue for a good listing gain and for the long term. He points out the following key points about the company: 

Positive:

  • Valuations attractive on the book value and RoE fronts
  • Strong background of promoters 

Negative:

  • Mostly present in southern parts of the country

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