Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index at 24,800-24,875 levels and a strong buy zone at 24,625-24,765 levels on Wednesday, August 20. For the Nifty Bank, the market wizard expects support to emerge at 55,500-55,650 levels and a strong buy zone at 55,200-55,350 levels. 

How market guru Anil Singhvi sums up trade setup:

• Global: Neutral

• FII: Neutral

• DII: Positive

• F&O: Neutral

• Sentiment: Neutral

• Trend: Neutral

• FII long positions unchanged at 10 per cent as before Tuesday’s session

• Nifty put-call ratio (PCR) at 1.14 vs 1.00

• Nifty Bank PCR at 0.82 vs 0.77

• Volatility index India VIX down 5 per cent at 11.79

The market wizard expects a higher zone at 25,025-25,125 levels and a profit-booking zone at 25,150-25,200 levels for the headline index.

For the banking index, he expects a higher zone at 56,000-56,200 levels and a profit-booking zone at 56,250-56,450 levels.

What market data signals

• Nifty and Nifty Bank have closed in the green for four straight sessions
• Nifty traded within the previous day’s range on Tuesday, hovering near its 50-day moving average (DMA) of 25,015 for two days
• Nifty formed higher lows for six sessions before halting the streak; this indicates strength at lower levels
• Nifty Bank made a lower high and lower low on Tuesday, displaying some weakness
• Midcap and smallcap indices closed near three-week highs
• Nifty Auto hit a 10-month high
• HDFC Bank failed to sustain above its breakout level of Rs 2,000 on Tuesday
• Reliance posted a breakout on Tuesday, closing at Rs 1,421; its last such close was on April 7, at Rs 1,171 (that day, Nifty had hit the year’s low of 21,743)
• DIIs have bought for 31 consecutive sessions–their first such streak since January 31
• FIIs’ index futures long positions are at 9.71 per cent, staying below 10 per cent for 13 sessions in a row–the first such instance since 2012
• Dow hit a fresh intraday high on Tuesday
• Nvidia staged its sharpest fall in four months
• Crude oil slipped to 10-week lows, near $66/barrel

FIIs net buyers or sellers?

• After a day of buying, FIIs posted small selling in cash
• On a net-net basis, FIIs purchases amount to Rs 1,725 crore
• Strong support continues from DIIs
• Large FII short covering still due
• Robust domestic fund buying is keeping the market supported

Key levels to track in Nifty50 and Nifty Bank

• Buy in the 24,765–24,875 range on a weak start, or after a breakout above 25,025
• Nifty a preferred bet over Nifty Bank for buying
• Nifty Bank has strong support at 55,500-55,650
• Strength will only return if Nifty Bank sustains above 56,150

ANIL SINGHVI MARKET STRATEGY | How to trade Nifty Bank and Nifty50?

For existing long positions:

• Nifty intraday and closing stop loss at 24,800

• Nifty Bank intraday and closing stop loss at 55,500

For existing short positions:

• Nifty intraday and closing stop loss at 25,050

• Nifty Bank intraday and closing stop loss at 56,200

   

For new positions in Nifty50:

Stocks in F&O ban

• Out of ban: PG Electroplast

• Already in ban: Titagarh, RBL Bank

• New in ban: None

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