Anil Singhvi’s Post-Budget Market Strategy (Feb 6): Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects support to emerge at 23,525-23,635 levels and a strong buy zone at 23,425-23,500 levels for the headline Nifty50 index on Thursday, February 6. For the Nifty Bank, he expects support at 50,000-50,200 levels and a strong buy zone at 49,575-49,750 levels. 

Here’s how the market guru sums up the trade setup this morning: 

• Global: Positive

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Neutral

• FII long positions at 18 per cent vs 17 per cent before the previous session

• Nifty put-call ratio (PCR) at 0.97 vs 1.16

• Nifty Bank PCR at 0.92 vs 0.91

• Volatility index India VIX down 0.5 per cent at 14.08

The market wizard sees a higher zone at 23,800-23,870 levels and a strong sell zone at 23,925-24,000 levels for the headline index. 

For the banking index, he sees a higher zone at 50,600-50,750 levels and a strong sell zone at 50,850-51,000 levels.  

EDITOR’S TAKE | How market guru Anil Singhvi views D-Street nearly a week into Budget announcements

The market wizard suggests investors continue a ‘buy on dips’ strategy, buying only at important support levels and taking profits at important resistance levels.

He believes that midcap and smallcap stocks will stage strong moves and better opportunities now than the rest of the market. 

Here are a few things he points out: 

• It is a good thing that the market is less likely to slide below January 27 lows 
• One should continue with the ‘buy on dips’ strategy as long as Nifty and Nifty Bank close above 23,300 and 49,300 levels, respectively
• Moves above 23,800 and 50,500 will lead to further gains, respectively
• Two important triggers for the market now:
  • RBI policy statement on Friday
  • Delhi election results on Saturday
• The RBI policy is expected to be positive for D-Street
• Delhi polls are set to have a negligible impact on the market
• A BJP win will be mildly positive for Dalal Street

ANIL SINGHVI MARKET STRATEGY

For existing long positions: 

• Nifty intraday stop loss at 23,600 and closing stop loss at 23,500

• Nifty Bank intraday stop loss at 50,100 and closing stop loss at 49,575

For existing short positions:

• Nifty intraday stop loss at 23,875 and closing stop loss at 23,800

• Nifty Bank intraday stop loss at 50,600 and closing stop loss at 50,500

For new positions in Nifty50:

• Aggressive traders can buy Nifty with strict stop loss at 23,600 for targets of 23,750, 23,800, 23,850, 23,870, 23,925 and 23,975

• Aggressive traders can sell Nifty near 23,850 and 23,975 levels with a strict stop loss at 24,100 for targets of 23,800, 23,750, 23,700, 23,675 and 23,635

For new positions in Nifty Bank:

• Best range to buy Nifty Bank is 49,575-49,750 with a stop loss at 49,500 for targets of 50,000, 50,150, 50,200, 50,350, 50,450 and 50,500

• Aggressive traders can buy Nifty Bank with a strict stop loss at 50,100 for targets of 50,500, 50,600, 50,750, 50,850, 50,900 and 51,000

• Aggressive traders can sell Nifty Bank in the 50,750-51,000 range with a strict stop loss at 51,100 for targets of 50,600, 50,525, 50,375, 50,200 and 50,150

No stock in F&O ban

RESULTS REVIEWS

Cummins India

• Results in line with expectations 
• The stock has already outperformed its peers
• Investors should not buy on a gap-up opening
• Investors should book profits on a gap-up opening
• Support at Rs 2,870 and expected higher levels at Rs 2,980 and Rs 3,010

Gujarat Gas

• Results a mixed bag
• Results slightly below estimates
• The stock does not react much to earnings 
• Futures have support at Rs 467 and Rs 450 and expected higher levels at Rs 488 and Rs 500 

Swiggy

• Results extremely weak 
• Cash burn in quick commerce is a big conern
• The only thing is that the stock has already fallen almost 18 per cent after Zomato results

STOCK OF THE DAY

Buy: DLF futures for targets of Rs 774 and Rs 782 with a stop loss at Rs 747 

• Real estate stocks are looking strong before the Februrary RBI policy
• CLSA has upgraded the stock to ‘buy’ with a Rs 975 target 

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