Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty index coming in at 19,950-20,000 levels and a strong buy zone at 19,865-19,915 levels on Thursday, September 14. For the Nifty Bank, he expects support at 45,525-45,650 levels and a strong buy zone at 45,250-45,375 levels.

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

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

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Singhvi sees a "blue sky zone" emerging for the Nifty above 20,125. For the banking index, he expects a higher zone at 46,000-46,175 levels and a profit-booking zone at 46,250-46,375 levels. 

ANIL SINGHVI MARKET STRATEGY  

Singhvi expects blue-chip stocks to strengthen further amid signs of FII outflows slowing down in the cash market and inflows in futures. Buying by domestic funds are expected to support midcap and smallcap shares, he adds. 

One can expect strong support coming in at 19,825-19,950 and 45,150-45,325 for the Nifty and the Nifty Bank, respectively, with a higher target for the banking index placed at 46,175-46,375 levels. 

  • FII index long positions at 66 per cent vs 63 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.25 vs 1.18, on a higher side
  • Nifty Bank PCR at 1.18 vs 1.06, on a higher side
  • Fear index India VIX up one per cent at 11.83

For existing long positions:

  • Nifty intraday and closing stop loss at 19,900
  • Nifty Bank intraday and closing stop loss at 45,500

For existing short positions:

  • Nifty intraday and closing stop loss at 20,125
  • Nifty Bank intraday and closing stop loss at 46,000

For new positions in Nifty:

  • The best range to buy Nifty is 19,925-20,000 with a stop loss at 19,850 for targets of 20,075, 20,100; a blue sky zone above 20,125 
  • Sell Nifty only if it falls below 19,850, with a strict stop loss at 20,000

For new positions in Nifty Bank:

  • Buy Nifty Bank in the 45,525-45,650 range with a stop loss at 45,300 for targets of 45,700, 45,775, 45,875 and 45,975
  • Aggressive traders can buy Nifty Bank with a strict stop loss at 45,500 for targets of 46,000, 46,075, 46,175, 46,250, 46,300 and 46,375
  • Aggressive traders can sell Nifty Bank in the 46,200-46,375 range with a strict stop loss at 46,500 for targets of 46,075, 46,000, 45,925, 45,850, 45,650 and 45,575

Stocks in F&O ban:

  • New in ban: REC
  • Already in ban: IEX, NALCO, Manappuram, SAIL, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements
  • Out of ban: BHEL, Chambal Fertilisers

Stocks of the day: 

Bombay Dyeing and Bombay Burmah Trading Corp (BBTC):

  • Bombay Dyeing sold land for Rs 5,200 crore
  • Book profit and exit in both the stocks at higher levels
  • Rs 3,650 crore going to repay debt

IPO review: 

Singhvi suggests applying for the RR Kabel IPO for the long term. He points out the following key points about the company: 

Positive

  • Experienced management
  • Strong leadership and brand
  • Impressive revenue growth
  • Strong financials

Negative

  • Family-owned business
  • Margins lowest among peers
  • Capacity utilisation already near 75 per cent
  • Valuations not very attractive

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