Anil Singhvi’s Strategy January 25: Day support zone on Nifty is 14,275-14,350 & Bank Nifty is 30,900-31,000

Amid positive global markets, futures & options (F&O), negative foreign institutional investors (FIIs), domestic institutional investors (DIIs) and sentiment cues, the short-term trend of the Indian stock markets will be positive on Monday, January 25, 2021.

Benchmark domestic stocks on Friday, January 22, 2021, plunged one and a half per cent amid profit booking in the equity markets worldwide. The BSE Sensex closed below 49,000-mark and the NSE Nifty settled below 14,400 level. Global stocks corrected as investors locked profits after a recent rally that was driven by hopes of a massive US economic stimulus plan by incoming President Joe Biden.

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The Sensex tumbled 746.22 points to finish at 48,879 and the Nifty declined 218.45 points to end at 14,372. Likewise, Bank Nifty lost 1,019.65 points or 3.17 per cent and closed at 31,167.25. The broader market at BSE also fell but outperformed the Sensex. The BSE Mid-Cap index ended 1.19 per cent down and the BSE Small-Cap index slipped 1.04 per cent.

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for January 25:

Day support zone on Nifty is 14,275-14,350, below that 14,150-14,225 is strong Buy zone.

Day higher zone on Nifty is 14,475-14,525, above that 14,575-14,600 is profit-booking zone.

Day support zone on Bank Nifty is 30,900-31,000, below that 30,400-30,550 is strong Buy zone.

Day higher zone on Bank is Nifty 31500-31650, above that 31700-31850 profit-booking zone

Small Day Range on Nifty is 14,350-14,435, while the medium and bigger day ranges are 14,275-14,475 and 14,225-14,525, respectively.

Small Day Range on Bank Nifty 31,000-31,500, while the medium and bigger day ranges are 30,900-31,650 and 30,550-31,700, respectively.

FIIs decreased Index long at 59% Vs 67%, FIIs buying expected from lower levels.

PCR oversold at 1.14 Vs 1.58, short covering expected.

VIX up by 1% at 22.42.

For Existing Long Positions:

Nifty intraday and closing stop loss are 14,350.

Bank Nifty intraday and closing stop loss are 30,900.

For Existing Short Positions:

Nifty intraday and closing stop loss are 14,525.

Bank Nifty intraday and closing stop loss are 31,550.

For New Positions:

Buy Nifty with a stop loss of 14,350 and target 14,435, 14,475, 14,500, 14,525, 14,575.

Sell Nifty in 14,500-14,575 range with a stop loss of 14,625 and target 14,475, 14,435, 14,375.

For New Positions:

Buy Bank Nifty with a stop loss of 31,000 and target 31,500, 31,650, 31,700, 31,800. 

Sell Bank Nifty in 31650-31800 range with a stop loss of 31,950 and target 31,550, 31,350, 31,200.

Total 3 stocks in F&O Ban:

Already in Ban: SAIL

New in Ban: Nalco, PNB

Out of Ban: Idea, Sun TV

Stove Craft IPO Preview:

Only high risk-taking aggressive Investors apply for small listing gains

Positives:

Strong Brand and Marketing network

Company to reduce borrowing cost from IPO money

Negatives:

Financials not impressive, very small profit track record

Profitability only due to reduction in advertisement expenses, employee cost and no tax due to accumulated losses