Anil Singhvi strategy February 21: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 22,050-22,125 levels and a strong buy zone at 21,925-22,025 levels on Wednesday, February 21.

For the Nifty Bank, he expects support to come in at 46,725-46,900 levels and a strong buy zone at 46,500-46,600 levels.

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

• Global: Neutral

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

The market wizard expects a "blue-sky zone" for the Nifty50 above 22,250, and a higher zone for the banking index at 47,375-47,475 levels and a profit-booking zone at 47,550-47,700.  

ANIL SINGHVI MARKET STRATEGY 

• FII index longs at 41 per cent vs 39 per cent the pervious day
• Nifty put-call ratio (PCR) at 1.24 vs 1.25
• Nifty Bank PCR at 1.46 vs 1.14
• Volatility index India VIX unchanged at 16.07

For existing long positions:

• Nifty intraday and closing stop loss at 22,000

• Nifty Bank intraday stop loss at 46,900 and closing stop loss at 46,500

For existing short positions:

• Nifty intraday and closing stop loss at 22,250

• Nifty Bank intraday and closing stop loss at 47,200

For new positions in Nifty:

• The best range to buy Nifty is 22,025-22,125 with a stop loss at 21,900 for targets of 22,175 and 22,200; above 22,250, one may hold the position with a trailing stop loss

• Sell Nifty only if it trades below 21,900

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 46,725-46,900 with a strict stop loss at 46,500 for targets of 47,075, 47,175, 47,300, 47,375, 47,475 and 47,550

• Aggressive traders can sell Nifty Bank in the 47,500-47,700 range with a strict stop loss at 47,850 for targets of 47,350, 47,275, 47,200, 47,100, 47,000, 46,900, 46,725

F&O ban update

• New in ban: RBL Bank, GNFC, GMR Airports, Balrampur Chini

• Out of ban: AB Fashion, Ashok Leyland

• Already in ban: Biocon, NALCO, Canara Bank, Hind Copper, Bandhan Bank, Zee Entertainment Enterprises, India Cement, Indus Tower, SAIL

Stock news

Hindalco 

Subsidiary Novalis has applied for IPO in US markets
Sentimentally Slightly positive for Hindalco

Angel One

• Angel Broking QIP tomorrow
• Surprised to see cash rich company raising funds
• Trading at high valuations

Devyani International 

• Big block selling by promoters is a negative surprise
• Stock trading at very high valuations
• Don’t jump to Buy post block deal

Swan Energy and Union Bank 

• Two companies coming out with QIP
• Buy at lower levels post QIP

Stocks of the day

Sell ABB futures with a stop loss at Rs 4,590 for targets of Rs 4,490, Rs 4,435 and Rs 4,380

• Revenue much below estimates
• Weak operational performance on QoQ and YoY bases
• Trading at high valuations at 70 times PE
• Steady margin at 15.1 per cent is the only good thing
• Conference call at 11:30 am

Should you subscribe to Juniper Hotels IPO?

The market guru points out that only high risk-taking investors should apply for the IPO from a long-term perspective, and it is better to buy the stock post-listing.

Singhvi has identified the following key points about the company:  

Positive 

• Experienced promoters
• Strong brand of Hyatt with its equity investment
• IPO to retire Rs 1500 crore debt to save Rs 170 crore interest cost
• Strong expansion plans
• Another listed company will get merged and will result into a bigger portfolio

Negative

• Company making losses for three financial years
• Company requires high capex for expansion
• Some conflict of interest as promoters in similar business

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