Anil Singhvi Market Strategy July 23: Important levels to track in Nifty50, Nifty Bank today as India awaits Nirmala Sitharaman's 7th Budget

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects strong support for the headline Nifty50 index to emerge at 24,350-24,435 and higher levels at 24,585-24,660 till 11 am on Tuesday, July 23, when Finance Minister Nirmala Sitharaman is scheduled to make history by presenting her seventh Union Budget in a row. 

For the Nifty Bank, he expects strong support at 51,750-51,875 levels and a higher range at 52,425-52,575 levels in the same timeframe. 

EDITOR'S TAKE | How market guru Anil Singhvi views Dalal Street today 

• Monday's relative recovery, following previous session's sharp fall, has boosted investor confidence on Dalal Street
• Nifty's close above 24,500 is a sign of strength 
• FIIs have emerged net buyers of Rs 10,500 crore in cash & stock futures
• Most investors have light positions ahead of Union Budget
• Even slightly positive announcements in today's Budget can trigger a surge on Dalal Street
• Brace for a big fall in case higher taxes are announced
• Make a list of your favourite stocks with clear entry levels
• Be brave and use opportunities to buy
• Favourite sectors to bet on Budget theme: life insurance, logistics & FMCG
• Buy in case of a good Budget; buy at key support levels in case of a bad Budget
• Profit-booking expected in 24,800-25,000 range in case of a strong move
• Nifty closing below 24,300 to be a negative signal for market
• A close above 24,800 to lead to further buying
• Nifty Bank closing below 52,000 to lead to more weakness
• Strong moves expected if Nifty50 closes above 53,100 

What to expect in today's Budget?

• Budget 2024 expected to be slightly populist
• Those earning low incomes and service class individuals can expect some relief
• Emphasis likely on reducing fiscal deficit
• Focus expected to shift from industry & rural themes to individual taxpayers 
• Government likely to increase allocations for its favourite sectors
• Budget to contain economic reforms but fewer
• Focus likely on job creation, with special emphasis to increase skilled labour roles
• A mixed bag of announcements likely for Dalal Street
• No increase expected in STT, LTCG, STCG taxes

Key things to watch out for 

• Some relief for income tax assessees falling in the slab of Rs 8-10 lakh annual income under the new regime
• Insurance-related benefit likely to be increased under Section 80C of the Income Tax Act
• Among Section 80C benefits, a reduction or removal of GST on life insurance premium likely
• Rural demand to remain in focus
• Government to continue to push for Housing for All
• A boost likely for logistics space
• PLI schemes to continue without major changes
• Solar power to take centrestage in power sector announcements
• No possibility of bringing petroleum & gas under the ambit of GST yet 

10 big sectors & several shares to focus on

• Budget likely to bring positive triggers for life insurers: LIC, HDFC Life, ICICI Pru, SBI Life to benefit
• Solar power companies likely to get a boost: Borosil Renewable, Tata Power to benefit
• No major announcements likely for fertiliser space: Profit-taking expected in Chambal Fertilisers, Coromandel, RCF, NFL
• Focus on railway connectivity & logistics likely: Concor, Aegis Logistics, TVS Supply Chain to benefit
• No big announcements likely for metal space
• An increase in line with expectations likely in defence sector capex
• Dixon and Amber to benefit from PLI schemes 
• Paint, electrical wire, cable manufacturers to benefit from government's Housing for All push; Asian Paints, Berger Paints, Havells, Polycab to benefit
• Cement and capital goods businesses to benefit from infrastructure drive: L&T, IRB Infra, NCC, UltraTech 
• SEZ rules may be eased: A positive trigger for Jai Corp, RIIL, Adani Port 

Important levels to track in Nifty50 & Nifty Bank

• In case today's Budget contains tepid announcements and turns out to be a non-event:
  • Support range for Nifty50 at 24,250-24,350; a higher range at 24,650-24,800
  • For banking index, support range at 51,750-51,850 and a higher range at 52,675-52,825
• In case of a mild upmove in the market:
  • Strong support for Nifty50 at 24,000-24,200 followed by a higher range at 24,850-25,000 levels

Stock of the Day: Federal Bank

Buy Federal Bank futures with a stop loss at Rs 190 for targets of Rs 197, Rs 202 and Rs 205

• KV Subramanian has been appointed as MD & CEO for three years

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