Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty index coming in at 19,465-19,525 levels and a strong buy zone at 19,385-19,435 levels on Wednesday, September 6. For the Nifty Bank, he expects support at 44,300-44,425 levels and a strong buy zone at 44,000-44,200 levels.

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

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

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Singhvi sees a higher zone in the Nifty at 19,575-19,650 levels and a strong sell zone at 19,700-19,775 levels. For the banking index, he sees a higher zone at 44,675-44,775 levels and a strong sell zone at 44,850-45,000 levels.

ANIL SINGHVI MARKET STRATEGY

Singhvi points out that the Nifty is near the upper end of its recent trading range of 19,600-19,750. He suggests profit booking at higher levels of the range and adopting a 'buy on dips' strategy near key support levels amid weak signals from Wall Street, crude oil and the dollar index, and FII outflows. 

He expects strong support for the Nifty and the Nifty Bank in the 19,400-19,500 and 44,000-44,200 bands, respectively. 

Singhvi suggests traders book profits in the banking index at the upper end of the 44,800-45,000 range but wait for the right level patiently. 

  • FII index long positions unchanged at 52 per cent vs the previous day
  • Nifty put-call ratio (PCR) at 1.41 vs 1.37, near overbought level; be alert at a higher level
  • Nifty Bank PCR at 0.91 vs 1.16
  • India VIX down 1.35 per cent at 10.82

For existing long positions:

  • Nifty intraday stop loss at 19,465 and closing stop loss at 19,400
  • Nifty Bank intraday stop loss at 44,300 and closing stop loss at 44,000

For existing short positions:

  • Nifty intraday and closing stop loss at 19,650
  • Nifty Bank intraday and closing stop loss at 44,700

For new positions in Nifty:

  • The best range to buy Nifty is 19,435-19,525 with a stop loss at 19,340 for targets of 19,545, 19,575, 19,600, 19,625, 19,650 and 19,700
  • Aggressive traders can sell Nifty; the best range to do so is 19,575-19,650 with a stop loss at 19,750 for targets of 19,525, 19,500, 19,465, 19,435, 19,400 and 19,365

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 44,200-44,325 with a stop loss at 44,000 for targets of 44,425, 44,500, 44,575, 44,650, 44,725, 44,775, 44,850 and 44,950
  • The best range to sell Nifty Bank is 44,775-44,950 with a stop loss at 45,000 for targets of 44,725, 44,675, 44,625, 44,575, 44,525, 44,425 and 44,325

Stocks in F&O ban:

  • New in ban: Delta Corp
  • Already in ban: Balrampur Chini, BHEL, Hindustan Copper, Indiabulls Housing Finance, India Cements
  • Out of ban: None

IPO views:

Ratnaveer Precision Engineeering IPO

Singhvi suggests applying for the issue for "big listing gains". The issue, which opened for subscription on September 4, ends later on Wednesday. 

Singhvi has identified the following key points about the company:   

Positive

  • Experienced promoters
  • A strong growth track record
  • Investors find the small-priced, small-sized IPO attractive 
  • Very attractive valuations

Negative

  • High debt; equity ratio above two times
  • Increasing trade receivables

Jupiter Lifeline Hospitals IPO

  • Apply for good listing gains and for the long term

Positive

  • Experienced promoters
  • A strong financial track record
  • The hospital is built on the company's own land
  • The company will become debt-free after IPO
  • New hospital addition will ensure future growth
  • A very strong anchor book

Negative

  • Limited scope to improve revenue per bed
  • Occupancy levels lower than the industry
  • High dependency on the Thane hospital
  • Reasonable valuations

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