Anil Singhvi Market Strategy May 22: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy, Saturday Special Trading: Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 22,400-22,470 levels and a strong buy zone at 22,300-22,350 levels on Wednesday, May 22.

For the Nifty Bank, he expects support to come in at 47,700-47,850 levels and a strong buy zone at 47,450-47,625 levels.

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

• Global: Positive

• FII: Neutral

• DII: Positive 

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

He expects a higher zone for the headline index at 22,575-22,650 levels and a strong sell zone at 22,675-22,775 levels.

For the banking index, he expects a higher zone at 48,250-48,425 levels and a strong sell zone at 48,475-48,625 levels.

EDITOR'S TAKE 

• Strong global signals
• Crude oil rates ease in a good sign for Dalal Street
• FII remain net sellers in futures but make significant purchases in stock and index futures
• Strong buying by domestic institutions
• The pace at which Dalal Street is rising and falling is just perfect 
• Support at lower levels and profit-taking at higher levels also perfect
• Investors may buy good quality midcap and smallcap stocks
• A strong move expected once Nifty50 breaks out of the 22,400-22,600 range

ANIL SINGHVI MARKET STRATEGY  

• FII index longs at 32 per cent vs 28 per cent the previous day

• Nifty put-call ratio (PCR) at 1.15 vs 1.24

• Nifty Bank PCR at 0.75 vs 0.96

• Volatility index India VIX up 6.5 per cent at 21.84

For existing long positions:

• Nifty intraday stop loss at 22,350 and closing stop loss at 22,400

• Nifty Bank intraday stop loss at 47,900 and closing stop loss at 47,675

For existing short positions:

• Nifty intraday and closing stop loss at 22,600

• Nifty Bank intraday and closing stop loss at 48,350

For new positions in Nifty:

• The best range to buy Nifty is 22,400-22,470 with a stop loss at 22,300 for targets of 22,525, 22,575, 22,600, 22,650, 22,700 and 22,750

• Aggressive traders can sell Nifty in the 22,600-22,700 range with a strict stop loss at 22,800 for targets of 22,525, 22,500, 22,470, 22,435, 22,400 and 22,350

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 47,700-47,850 with a stop loss at 47,600 for targets of 47,925, 47,975, 48,050, 48,125, 48,225 and 48,350

• Aggressive traders can sell Nifty Bank in the 48,350-48,475 range with a strict stop loss at 48,625 for targets of 48,250, 48,175, 48,100, 48,050, 48,000 and 47,925

F&O ban update

• New in ban: IEX, NALCO, PNB                           
• Out of ban: Birlasoft, Hindustan Copper, SAIL
• Already in ban: AB Capital, Balrampur Chini, Bandhan Bank, Biocon, GMR Airports, Granules, Vodafone Idea, India Cements, Piramal Enterprises, Zee Entertainment Enterprises 

Results reviews 

BHEL 

• Sell BHEL futures with a stop loss at Rs 324 for targets of Rs 310, Rs 302 and Rs 295
• Results below estimates
• Poor execution
• Weak cash flow and working capital management but very strong order book
• Stock already up 38 per cent in three months and 300 per cent in one year
• Long-term investors can buy in case of a fall of more than 10 per cent

Metropolis 

• Sell Metropolis futures with a stop loss at Rs 1,917 for targets of Rs 1,875, Rs 1,855 and Rs 1,840
• Results in line with expectations
• Margin below expectations

Stocks of the Day

Buy Hitachi Energy shares with a stop loss at Rs 10,700 for targets of Rs 11,000, Rs 11,200 and Rs 11,400

• Operational performance strong 
• Margin improved from 7.1 per cent to 10.7 per cent
• Profit up 220 per cent at Rs 114 crore

Buy JK Tyre shares with a stop loss at Rs 399 for targets of Rs 410, Rs 418 and Rs 425

• Operational performance strong 
• Margin improved from 10.3 per cent to 13 per cent

Buy Laxmi Organic Industries shares with a stop loss at Rs 252 for targets of Rs 260, Rs 266 and Rs 270

• Operational performance strong 
• Margin improved from 7.9 per cent to 11.40 per cent

Should you subscribe to the Awfis Space Solutions IPO?

The market wizard cautions that the upcoming IPO is suitable for "very high risk-taking investors" with a long-term perspective. Other investors may consider buying into the stock post-listing, he says.

The market guru has identified the following key points about the market-bound company: 

Positive 

• Unique business model
• Strong growth track record
• Impressive anchor book and pre-IPO investors
• Experienced promoters

Negative

• Loss-making company
• Cash flows volatile 
• Competitors like WeWork, Coworking Spaces etc. make losses regularly 
• Law entry barriers and competition from unorganised players
• Valuations expensive 

Catch all the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.