Stock Market Today: Anil Singhvi explains why 11,650 is a crucial Nifty level for investors
The stock market has seen some breakdown on Monday. How does it impact the sentiments as we approach the monthly expiry? Zee Business Managing Editor Anil Singhvi gives his take on the situations and provides a roadmap of what lies ahead
The stock market has seen some breakdown on Monday. How does it impact the sentiments as we approach the monthly expiry? Zee Business Managing Editor Anil Singhvi gives his take on the situations and provides a roadmap of what lies ahead.
The Market Guru said that he did not expect a big recovery till the day of expiry. He said that it was unlikely that the Nifty would cross 11,975-12000 levels. While nothing can be ruled out in the market, one must not expect Nifty to hold on at the upper levels, he added.
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The data pertaining to the global markets, Foreign Institutional Investors (FIIs) and futures markets explain this phenomenon, Singhvi said. He advised the investors to remain cautious at all times.
The lower levels now hold importance and will be indicative of where the markets stop. He said that 11,650 appears to be a make or break level for investors.
On 15 October, the Nifty attained a low of 11660 before gaining a high of 12,025.
Even then, the Managing Editor had suggested that the trend will become neutral from positive around 11,650. If the markets close around this level on Tuesday, the trend will become neutral and not negative, he clarified. There is still some time for markets to become negative, if at all it goes around that route. This strategy is to be adopted by the positional investors, he further said.
As for Bank Nifty this level is around 23450. The markets closing below this should be an indication for reducing positions.
At the upper levels the zone between 11,975 and 12,000 is offering a strong resistance now. Profit booking is advised around these levels.
The chance of taking fresh position will arise once the markets close above 12,000, he said
The investors will have to watch out for the neutral trend and should accordingly reduce their positions.
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The Market Guru had given a stop loss of 11,850 on a closing basis to the traders on Monday. They were supposed to reduce their positions, then. If they have still not done it, the SGX Nifty is giving them a golden chance.
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