Anil Singhvi Market Strategy September 4: 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 25,050-25,150 levels and a strong buy zone at 24,875-25,000 levels on Wednesday, September 4.
For the Nifty Bank, he expects support to come in at 51,150-51,300 levels and a stronger support zone at 50,850-51,000 levels.
Here's how the market guru sums up the trade setup this morning:
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Global: Negative
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FII: Positive
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DII: Positive
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F&O: Neutral
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Sentiment: Cautious
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Trend: Positive
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FII long positions flat at 70 per cent as the previous day
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Nifty put-call ratio (PCR) at 1.2 vs 1.18
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Nifty Bank PCR at 1.07 vs 0.89
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Volatility index India VIX down 1.5 per cent at 13.84
The market wizard sees a higher zone at 25,200-25,275 levels and a "blue-sky zone" above 25,350 for the headline index.
For the banking index, he sees a higher zone coming in at 51,675-51,750 levels and a profit-booking zone at 51,875-51,950 levels.
How to trade Nifty Bank and midcap & smallcap stocks
- Keep positions light
- Buy slowly and in small quantities; focus on quality stocks with larger corrections
- It is a make-or-break session for Nifty Bank today
- The banking index staged a good breaout on Tuesday
- Weekly F&O expiry due today
- Investors should maintain a 'wait and watch' approach
- Weekly expiry should not be below 51,150
- Nifty Bank must remain strong in order to avoid a significant fall in the market
MARKET STRATEGY
For existing long positions:
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Nifty intraday stop loss at 25,150 and closing stop loss at 24,950
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Nifty Bank intraday stop loss at 51,200 and closing stop loss at 50,900
For existing short positions:
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Nifty intraday and closing stop loss at 25,350
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Nifty Bank intraday and closing stop loss at 51,750
For new positions in Nifty50:
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Sell Nifty with a stop loss at 25,350 for targets of 25,150, 25,125, 25,075, 25,050, 25,000 and 24,975
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Aggressive traders can buy in the 24,975-25,050 range with a strict stop loss at 24,900 for targets of 25,125, 25,150, 25,200, 25,235 and 25,275
For new positions in Nifty Bank:
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Aggressive traders can sell Nifty Bank with a strict stop loss at 51,800 for targets of 51,450, 51,350, 51,300, 51,250, 51,150, 51,075 and 51,000
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Aggressive traders can buy Nifty Bank in the 51,000-51,150 range with a strict stop loss at 50,800 for targets of 51,250, 51,300, 51,350, 51,425, 51,575 and 51,675
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New in ban: AB Fashion
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Already in ban: Balrampur Chini, Hindustan Copper
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Out of ban: None
Why did US markets fall?
- August manufacturing PMI reading slightly below analysts' expectations
- 10-year bond yield falls to near 3.8 per cent
- Likelihood of slowing growth
- Weakness in Nasdaq due to IT and semiconductor stocks
- Nvidia stock has plunged 9.5 per cent
How fearful are investors of a fall in US markets?
- No major reason for Dow to fall
- Index made highs on four occasions last week
- Market needs an excuse to fall after one-way rally
- Heavy selling in Nasdaq due to Nvidia; some more downside possible
- September 18 Fed meeting to determine market direction
- Fear about a recession will lead to sharper and more frequent rate cuts than anticipated earlier
Will it impact Dalal Street?
- No fear of a recession in India
- Selling in Nvidia not dangerous for Indian markets
- Some weakness possible owing to a weakening global sentiment
- No need to panic as long as Nifty50 and Nifty Bank hold 24,950 and 50,900 levels on a closing basis
- Investors should view the situation as running correction
- Metal and IT stocks likely to take the biggest hit; investors should exercise caution in these spaces
Stocks of the Day
Sell SAIL futures for targets of Rs 127 and Rs 125 with a stop loss at Rs 135
- Metals weak globally
Sell Tech Mahindra futures for targets of Rs 1,635, Rs 1,620 and Rs 1,610 with a stop loss at Rs 1,670
- IT stocks remain under pressure due to global reasons
Sell JSW Steel futures with a stop loss at Rs 946 for targets of Rs 921, Rs 911 and Rs 901
- Metals weak in global markets for 4th consecutive day
Sell LTTS futures with a stop loss at Rs 5,800 for targets of Rs 5,700, Rs 5,645 and Rs 5,630
- Weakness in IT stocks due to US slowdown fears
Sell JSW Steel futures with a stop loss at Rs 946 for targets of Rs 920, Rs 911 and Rs 901
- Metals weak in global markets for 4th consecutive day
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11:12 AM IST