Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty index emerging at 19,675-19,750 levels and a strong buy zone at 19,575-19,650 levels on Thursday, October 12, a day after Tata Consultancy Services (TCS) kicked off the corporate earnings season. For the Nifty Bank, he expects support at 44,300-44,425 levels and a strong buy zone at 44,000-44,125 levels.

Here's how Anil Singhvi sums up the market setup:

  • Global: Positive
  • FII: Positive
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Positive
  • Trend: Positive

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Singhvi sees a higher zone for the Nifty coming in at 19,850-19,900 levels and a profit-booking zone at 19,950-20,000 levels. He pegs a higher zone for the banking index at 44,675-44,750 levels and a profit-booking zone at 44,875-45,000 levels. 

ANIL SINGHVI MARKET STRATEGY

Singhvi points out positive signals from crude oil, Wall Street, bond yields, the dollar index and foreign flows. He expects strong support for the Nifty and the Nifty Bank at 19,675-19,750 and 44,250-44,425 levels, and sees the next targets emerging at 20,000 and 45,000, respectively. Closing levels above 19,800 and 44,800 will lead to fresh breakouts in both indices, he adds.

 

  • FII index long positions at 29 per cent vs 26 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.22 vs 1.31
  • Nifty Bank PCR at 0.95 vs 1.11
  • Fear index India VIX down 2.5 per cent at 10.99

For existing long positions:

  • Nifty intraday and closing stop loss at 19,675
  • Nifty Bank intraday stop loss at 44,350 and closing stop loss at 44,000

For existing short positions:

  • Nifty intraday and closing stop loss at 19,850
  • Nifty Bank intraday and closing stop loss at 44,800

For new positions in Nifty:

  • The best range to buy Nifty is 19,675-19,765 with a stop loss at 19,625 for targets of 19,800, 19,835, 19,900, 19,950 and 20,000
  • Aggressive traders can sell Nifty in the 19,900-20,000 range with a strict stop loss at 20,050 for targets of 19,850, 19,815, 19,765, 19,725 and 19,700

For new positions in Nifty Bank:

  • The best range to buy Nifty Bank is 44,200-44,400 with a stop loss at 44,000 for targets of 44,500, 44,625, 44,675, 44,750, 44,825, 44,925 and 45,000
  • Aggressive traders can sell Nifty Bank in the 44,750-44,925 range with a strict stop loss at 45,000 for targets of 44,625, 44,575, 44,525, 44,425, 44,350 and 44,250

Stocks in ban:

  • New in ban: India Cements, Balrampur Chini, Hindustan Copper
  • Out of ban: MCX, Delta Corp
  • Already in ban: L&T Finance, PNB, Manappuram Finance, Indiabulls Housing Finance

TCS result review: 

Singhvi sees support for TCS futures coming in at Rs 3,555-3,575 levels and a higher zone at Rs 3,640-3,665 levels. He advises a 'buy on dips' strategy on the counter. 

The market guru is of the view that the IT sector as a whole as begun a process of bottoming out. He points out the following key points about TCS after the IT major's earnings announcements:  

Negative

  • Buyback price and size below expectations
  • Negative growth in dollar revenue

Positive

  • Strong margins and guidance
  • Strong new order win at $11.2 billion

Stock of the day:

Buy Aurobindo Pharma futures with a stop loss at Rs 880 for targets of Rs 912, Rs 920 and Rs 930

  • Negotiations for contract manufacturing with Merck

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