Nifty or Bank Nifty, whose move is better? Anil Singhvi decodes performance for investors

Stock markets have been moving higher and many trends and triggers are there to weigh for investors index-wise too, both domestic and global. Zee Business Managing Editor Anil Singhvi does exactly that and said that Nifty has moved better than Bank Nifty. He added that sector rotation supports Nifty too. There will be long lasting effect to stop investment coming from China and Hong Kong.

निफ्टी या बैंक निफ्टी, किसकी चाल बेहतर?

अनिल सिंघवी- बैंक निफ्टी के मुकाबले निफ्टी की चाल बेहतर, सेक्टर रोटेशन से निफ्टी को सहारा
चीन और हांगकांग से आने वाले निवेश पर रोक का होगा लॉन्ग लास्टिंग असर#EditorsTake #Nifty #StockMarket #China @AnilSinghvi_ pic.twitter.com/usvw4uyYoZ

— Zee Business (@ZeeBusiness) November 24, 2020

Anil Singhvi said that there is no doubt that Nifty holds more strength when compared to Bank Nifty. RBI guidelines which came yesterday were negative for Large Banks like SBI, ICICI Bank and Kotak Bank because of the holding companies that these banks have.

Rotation of the sector is giving support to the Nifty - just yesterday, markets got support from Reliance Industries, similarly IT sector, Pharma sector and Auto Sector are rotationally supporting the Nifty on daily basis. In past 3 sessions, Nifty made new life highs 2 times.

Further, Singhvi said that in yesterday’s session he witnessed that the open Interest position had reduced considerably in Bank Nifty. The sharp fall in the positions of Bank Nifty indicates that participants have reduced their positions in Bank Nifty. On the other side, it is good if the positions are reduced indicating markets have become light.

Singhvi said that some news came during yesterday’s market closing that Investment worth Rs 13000 cr coming from China and Hong Kong will not be allowed into India. The amount is not small and this development should not be ignored as markets are trading near new highs.

Investors always make the mistake of ignoring bad news when the market is good and ignoring the good news when the market is bad. Majority of the participants in the markets make these mistakes. Also, there are significant good developments simultaneously happening in markets.

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What Market participants Should Do?

Bank Nifty can rally strongly from here as well, but Anil Singhvi said he is more comfortable taking long position in Nifty over Bank Nifty. Singhvi added that he would suggest market participants to take short positions on Bank Nifty.  Strong breakout above the levels of 29500 – 29600 levels on Bank Nifty will change his view on Bank Nifty. This will indicate that Bank Nifty underperformance is over. Bank Nifty will remain weak below the levels of 28800.