Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty index emerging at 18,975-19,025 levels and a strong buy zone at 18,850-18,925 levels on Monday, October 30. For the Nifty Bank, he expects support at 42,300-42,500 levels and a strong buy zone at 42,000-42,100 levels.

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

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

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Singhvi expects a higher zone for the Nifty50 at 19,075-19,125 levels and a strong sell zone at 19,200-19,275 levels. For the banking index, he sees a higher zone coming in at 43,000-43,150 levels and a strong sell zone at 43,400-43,550 levels.  

ANIL SINGHVI MARKET STRATEGY

Singhvi has a strong 'buy' call in case the domestic market makes a gap-down opening amid mixed global signals, geopolitical concerns on account of rising tensions between Israel and Hamas, FIIs' index long positions remaining at 12 per cent, and lightness across markets despite Friday's recovery. He believes that there is nothing to worry on Dalal Street as long as the market does not give up the lower levels of Friday. He points out that Reliance posted a good set of quarterly results and though the pharma space may remain strong, the NBFC basket may be disappointing on Dalal Street. 

The market wizard expects strong support for the Nifty and the Nifty Bank at 18,825-18,925 and 42,125-42,275 levels, and the levels of 19,125-19,275 and 43,150-43,375 to emerge in case of a recovery, respectively.

  • FII index long positions at 12 per cent vs 11 per cent the previous day
  • Nifty put-call ratio (PCR)  at 0.96 vs 0.82
  • Nifty Bank PCR at 0.93 vs 0.75
  • Fear index India VIX down seven per cent at 10.91

For existing long positions:

  • Nifty intraday stop loss at 18,925 and closing stop loss at 18,825
  • Nifty Bank intraday stop loss at 42,475 and closing stop loss at 42,275

For existing short positions:

  • Nifty intraday and closing stop loss at 19,125
  • Nifty Bank intraday stop loss at 43,000 and closing stop loss at 43,150

For new positions in Nifty:

  • The best range to buy Nifty is 18,875-18,975 with a stop loss at 18,800 for targets of 19,025, 19,050, 19,075, 19,125, 19,200 and 19,250
  • The best range to sell Nifty is 19,125-19,275 with a stop loss at 19,350 for targets of 19,050, 19,025, 18,975, 18,925, 18,890 and 18,860

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 42,100-42,300 with a stop loss at 42,000 for targets of 42,475, 42,700, 42,775, 42,825, 43,000 and 43,150
  • The best range to sell Nifty Bank is 43,000-43,150 with a strict stop loss at 43,200 for targets of 42,850, 42,800, 42,725, 42,500, 42,300 and 42,125

No stock in F&O ban

​Results review:

Reliance

  • Strong results of the retail and oil & gas segments
  • Results of the telecom segment were in line with expectations

NTPC

  • Mixed results
  • The stock to move on the positive side

BPCL

  • The performance was operationally strong 
  • Profit booking expected at higher levels due to the forthcoming election

MGL

  • Mixed results
  • A good recovery in volumes but the margin weak
  • Profit booking expected at higher levels

BEL

  • Mixed results
  • Order book strong but execution still a concern

Stock of the day:

Buy Piramal Pharma shares with a stop loss at Rs 90 for targets of Rs 96, Rs 98 and Rs 100

  • Results surprisingly strong on all parameters
  • Improvement in demand for the generic API business
  • A 40 per cent jump in the order book in H1

Sell M&M Financial Services futures with a stop loss at Rs 282 for targets of Rs 272, Rs 267 and Rs 263

  • Results weak on all parameters
  • The NIM at a nine-quarter low

Sell City Union Bank of India futures with a stop loss at Rs 136 for targets of Rs 132, Rs 130 and Rs 128

  • Results were the worst among all private banks
  • Business momentum weak

Sell AU Small Finance Bank futures with a stop loss at Rs 703 for targets of Rs 680, Rs 674 and Rs 665

  • Results below expectations
  • Asset quality weak 
  • The NIM declines

Cello World IPO 

Singhvi suggests applying for the Cello World IPO for a small listing gain and for the long term. He points out the following main points about the primary market-bound company:

Positive

  • Strong brand and promoters
  • Strong growth outlook
  • Strong financial track record
  • No litigations against the company and its promoters

Negative

  • Big competition from unorganised players
  • Valuations reasonable; not very attractive, not very expensive

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