Anil Singhvi Market Strategy September 19: Important levels to track in Nifty50, Nifty Bank today
Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi shares his strategy for today's session on Dalal Street. Check out his take on key support and resistance levels for the Nifty and the Nifty Bank, and how he views the market.
Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 25,275-25,335 levels and a strong buy zone at 25,150-25,235 levels on Thursday, September 19.
For the Nifty Bank, he expects support to come in at 52,425-52,575 levels and a strong buy zone at 52,150-52,275 levels.
Here's how the market guru sums up the trade setup this morning:
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Global: Positive
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FII: Positive
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DII: Neutral
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F&O: Neutral
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Sentiment: Positive
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Trend: Positive
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FII long positions at 69 per cent vs 68 per cent the previous day
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Nifty put-call ratio (PCR) at 1.13 vs 1.30
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Nifty Bank PCR at 0.99 vs 1.09
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Volatility index India VIX up six per cent at 13.37
The market wizard sees a higher zone for the headline index at 25,440-25,475 levels and a "blue-sky zone" above the 25,500 mark.
For the banking index, he sees a higher zone at 52,950-53,100 levels and a profit-booking zone at 53,175-53,350 levels.
Key takeaways from Fed policy review
- US central bank has started to reduce rates after four years
- Inflation under control
- Fed has announced 50 bps rate cut
- One can expect additional reduction of 50 bps this year, and 100 bps in 2025, 50 bps in 2026
Highlights of Fed commentary
- No fear of a recession
- US economy strong
- Fed confident about containing inflation at 2 per cent
- Clear signals about future rate cuts
- Fed not to return to too-low-interest-rate era
- Focus on addressing unemployment
- Fed Chair looks confident after a long time
Potential impact on India
- Dollar to remain weak
- Emerging markets like India can expect inflows
- It will be easier for RBI to reduce rates now
- Time to stay aligned with the strong uptrend
- With Fed policy now behind, one can expect buying to gather steam on Dalal Street
What should traders do?
- Risk emanating from the big event now gone
- Dalal Street is in a broad buying trend
- Maintain 'buy on dips’ strategy
- Fresh highs in Dow & S&P to strengthen buying trend
- One can expect seesaw moves on Dalal Street & Wall Street for this week
- Wall Street expected to give a clear direction from Monday
What should investors do?
- Pace of buying to increase on Dalal Street
- There's a higher possibility of RBI rate cuts now
- Time for investors to buy their favourite stocks now
- Buying to intensify in midcap & smallcap stocks
- No cause for concern as long as Nifty50 holds 24,750
ALSO READ: Fed surprises economists with better-than-expected 50 bps rate cut; what next?
MARKET STRATEGY
For existing long positions:
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Nifty intraday and closing stop loss at 25,275
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Nifty Bank intraday and closing stop loss at 52,400
For existing short positions:
- Nifty intraday stop loss at 25,525 and closing stop loss at 25,425
- Nifty Bank intraday stop loss at 53,050 and closing stop loss at 52,800
For new positions in Nifty50:
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The best range to buy Nifty is 25,235-25,335 with a stop loss at 25,150 for targets of 25,375, 25,415, 25,440 and 25,475; above 25,500, one may hold their long positions with a trailing stop loss
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Aggressive traders can sell Nifty near 25,500 with a strict stop loss at 25,550 for targets of 25,440, 25,385, 25,335, 25,300 and 25,275
For new positions in Nifty Bank:
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Aggressive traders buy Nifty Bank with a strict stop loss at 52,500 for targets of 52,875, 52,950, 53,100, 53,175 and 53,350
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Aggressive traders can sell Nifty Bank in the 53,175-53,350 range with a strict stop loss at 53,425 for targets of 53,100, 53,025, 52,950, 52,875 and 52,750
Stocks in F&O ban
- New in ban: OFSS
- Out of ban: Hindustan Copper
- Already in ban: Biocon, PNB, LIC Housing Finance, Birlasoft, GNFC, Granules India, Aarti Industries, Balrampur Chini, RBL Bank
Stocks of the Day
Buy Aster DM shares with a stop loss at Rs 408 for targets of Rs 428, Rs 435 and Rs 445
- Deal with Quality CARE in final stages, expected to be signed by the end of this month
Buy FirstCry shares with a stop loss at Rs 635 for targets of Rs 650, Rs 656 and Rs 665
- Morgan Stanley has initiated coverage with an 'overweight' rating and a target of Rs 818
- BofA has initiated coverage with a 'buy' rating and a target of Rs 770
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11:02 AM IST