Anil Singhvi’s Strategy November 26: Day support zone on Nifty is 12,725-12,825 & Bank Nifty is 28,650-28,900

Amid neutral global markets, foreign institutional investors (FIIs), negative domestic institutional investors (DIIs), positive futures & options (F&O) and cautious sentiment cues, the short-term trend of the Indian stock markets will be positive on Thursday, November 26, 2020.  

The equity benchmark indices corrected sharply and ended with heavy losses on Wednesday, November 25, 2020. The S&P BSE Sensex tumbled 694.92 points or 1.56 per cent to close at 43,828.10. The Nifty 50 index fell 196.75 points or 1.51 per cent to 12,858.75. The Bank Nifty fell 540.85 points or 1.82 per cent to end at 29,196.40. 

The broader market at BSE underperformed the Sensex as the BSE Mid-Cap index depreciated 1.76 per cent while the BSE Small-Cap index fell 1.13 per cent.

Editors Take On Margin:

1. Only additional margin imposed in March to reduce volatility is removed.

2. No relaxation in rules of margin collection and reporting introduced on 1st September.

3. New rules of peak margin collections will be implemented from 1st December, it will impact Intraday trading volumes in all segments.

Editors Take on LVB-DBS Merger:

1. Share value of LVB is zero now.

2. LVB shareholders will not get any share in DBS.

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for November 26: 

Day support zone on Nifty is 12,725-12,825, below that 12,700-12,725 is strong support zone.

Day higher zone on Nifty is 12,925-12,975, above that 13,050-13,125 is profit-booking zone

Day support zone on Bank Nifty is 28,650-28,900, below that 28,450-28,550 is strong support zone.

Day higher zone on Bank Nifty is 29,500-29,600, above that 29,750-29,900 is profit-booking zone

The small day range for trading on Nifty is 12,825-12,925, while the medium and bigger ranges are 12,775-12,975 and 12,725-13.050, respectively.

The small day range for trading on Bank Nifty is 29,050-29,500, while the medium and bigger ranges are 28,850-29,600 and 28,650-29,750, respectively. 

FIIs reduced Index long to 64% Vs 69%.

PCR near oversold at 1.27 Vs 1.78.

India VIX short-up sharply by 10% to 23.13, indicating more volatility.

For Existing Long Positions:

Nifty Intraday stop loss is 12,800 and closing stop loss is 12,750.

Bank Nifty Intraday stop loss is 29,000 and closing stop loss is 28,850.

For Existing Short Positions:

Nifty Intraday and closing stop loss are 13,000.

Bank Nifty Intraday and closing stop loss are 29,600.

For New Positions: 

Buy Nifty in 12,750-12,825 range with a stop loss of 12,700 and target 12,875, 12,925, 12,975.

Aggressive traders can Buy Nifty with a stop loss of 12,800. 

Sell Nifty in 12,975-13,050 range with a stop loss of 13,150 and target 12,925, 12,875, 12,850.

For New Positions:

Buy Bank Nifty in 28,700-28,900 range with a stop loss of 28,500 and target 29,050, 29,125, 29,225, 29,400, 29,500, 29,600.

Aggressive traders Buy Bank Nifty with a stop loss of 29,000. 

Sell Bank Nifty in 29,500-29,750 range with a stop loss of 29,900 and target 29,250, 29,150, 29,075, 28,900, 28,850.

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Total 5 Stocks in F&O Ban:

2 Enters In Ban: Canara Bank, IB Housing

2 Out Of Ban: Federal Bank, Adani Enterprises

3 Already in Ban:  NALCO, SAIL, Tata Motors