Anil Singhvi Market Strategy (December 16): How to trade Nifty 50, Nifty Bank today

Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index at 25,900-26,000 levels and a strong buy zone at 25,700-25,850 levels on Tuesday, December 16. He sees support for the Nifty Bank emerging at 59,050-59,250 levels and a strong buy zone at 58,800-59,000 levels.

How market guru Anil Singhvi sums up the trade setup:

• Global: Negative

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Neutral

• Trend: Positive

• FII long positions at 11 per cent vs 10 per cent before Monday's session

• Nifty put-call ratio (PCR) at 1.18 vs 1.15

• Nifty Bank PCR at 0.94 vs 0.90

• Volatility index India VIX up 1.5 per cent at 10.25

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For the 50-scrip index, the market wizard expects a higher zone at 26,065-26,175 levels and a strong sell zone at 26,200-26,325 levels.

For the banking index, he expects a higher zone at 59,550-59,750 levels and a strong sell zone at 59,800-60,000 levels.

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Positive cues

• DIIs are buying continuously
• Selling pressure from FIIs
• Dollar Index weakness is set to lend support
• Crude oil is trading lower near the $60 mark
• Nifty appears to be attempting to hold above the 26,000 level
• There are signs of leadership emerging from Nifty Bank
• IT and FMCG sectors are set to lend strength

Negative cues

• The rupee is at a record low for a third straight day
• Rupee weakness dilutes the benefit of falling crude oil prices
• FIIs have reduced selling
• However, there is no clear sign of short covering yet

Should you buy again on a gap-down opening?

• Buying on Monday’s gap-down opening was the right call as the gap came after two days of strong gains
• On Tuesday’s gap-down opening, it will be better to wait a bit
• A sharp rise on a second consecutive gap-down session is tough
• One may buy near major support levels
• Expect volatility on weekly F&O expiry, keep booking profits alongside

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

For existing long positions:

• Nifty intraday and closing stop loss at 25,850
• Nifty Bank intraday and closing stop loss at 59,000

For existing short positions:

• Nifty intraday and closing stop loss at 26,120
• Nifty Bank intraday and closing stop loss at 59,600

For new positions in Nifty50:

• The best range to buy Nifty is 25,800-25,950 with a stop loss at 25,675 for targets of 26,000, 26,025, 26,050, 26,100, 26,125, 26,175 and 26,200

• The best range to sell Nifty is 26,065-26,200 with a stop loss at 26,325 for targets of 26,035, 26,000, 25,950, 25,900, 25,850 and 25,750

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 59,050-59,250 with a stop loss at 58,900 for targets of 59,350, 59,450, 59,525, 59,600, 59,675, 59,750 and 59,800

• Aggressive traders can sell Nifty Bank in the 59,550-59,750 range with a strict stop loss at 59,900 for targets of 59,475, 59,375, 59,275, 59,200, 59,125 and 59,050

Stock in F&O ban

• New in ban: None
• Already in ban: Bandhan Bank
• Out of ban: None