Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 21,850-21,925 levels and a strong buy zone at 21,725-21,800 levels on Wednesday, February 7.

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For the Nifty Bank, he expects support to come in at 45,375-45,550 levels and a strong buy zone at 45,075-45,200 levels.

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

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

The market wizard expects a higher zone for the Nifty50 at 22,000-22,125 levels and a blue-sky zone at 22,150. 

For the banking index, he expects a higher zone at 45,900-45,975 levels and a strong sell zone at 46,050-46,300 levels. 

ANIL SINGHVI MARKET STRATEGY 

  • FII index longs at 37 per cent vs 36 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.11 vs 0.89
  • Nifty Bank PCR unchanged at 0.67
  • Volatility index India VIX up one per cent at 15.79

For existing long positions:

  • Nifty intraday and closing stop loss at 21,700
  • Nifty Bank intraday stop loss at 45,500 and closing stop loss at 45,350

For existing short positions:

  • Nifty intraday and closing stop loss at 22,025
  • Nifty Bank intraday stop loss at 46,050 and closing stop loss at 46,200

For new positions in Nifty:

  • Buy Nifty with a stop loss at 21,800 for targets of 21,975, 22,000, 22,025, 22,100, 22,125; a blue-sky zone above 22,150  
  • Aggressive traders can sell Nifty in the 22,075-22,125 range with a strict stop loss at 22,150 for targets of 22,025, 22,000, 21,950, 21,925 and 21,900

For new positions in Nifty Bank:

  • Buy Nifty Bank in the 45,375-45,550 range with a stop loss at 45,200 for targets of 45,625, 45,700, 45,825, 45,900 and 45,975
  • Aggressive traders buy Nifty Bank with a strict stop loss at 45,500 for targets of 45,825, 45,900, 45,975, 46,050, 46,175 and 46,300
  • Aggressive traders can sell Nifty Bank in the 45,975-46,175 range with a strict stop loss at 46,300 for targets of 45,900, 45,825, 45,725, 45,675, 45,625 and 45,525

F&O ban update

  • New in ban : Ashok Leyland
  • Already in ban: UPL, NALCO, Hindustan Copper, India Cements, Indus Towers, Zee Entertainment Enterprises
  • Out of ban: None

RESULTS REVIEWS

Navin Fluorine 

Navin Fluorine futures have support at Rs 3,150, Rs 3,100 and Rs 3,085 levels; a higher level at Rs 3,300 and Rs 3,325 levels

  • One can start buying in the Rs 3,085-3,100 range
  • Very weak results on all parameters
  • Management expects a strong recovery in the second half of FY25
  • Like other chemical stocks, it may recover from lower levels

Britannia 

Britannia futures have support at Rs 4,855; a higher level at Rs 5,140

  • Results in line with expectations 
  • Volume growth strong at five per cent but pricing down

Stocks of the day

Buy Zaggle with a stop loss at Rs 228 for targets of Rs 241 and Rs 246

  • Strong performance on all parameters
  • Margin doubles
  • EBITDA grows three times
  • Profit multiplies 15 times

Buy Azad Engineering shares with a stop loss at Rs 890 for targets of Rs 920 and Rs 935

  • Strong performance on all parameters
  • Quarterly profit at Rs 17 crore vs Rs 4 crore a year ago

Stocks of the day

Buy JB Chemicals shares with a stop loss at Rs 1,690 for targets of Rs 1,770 and Rs 1,785

  • Strong performance
  • Margins increased from 22 per cent to 26.5 per cent 

Buy Radico Khaitan shares with a stop loss at Rs 1,710 for targets of Rs 1,750, Rs 1,775 and Rs 1,795

  • Strong results on all parameters

What to expect from upcoming IPOs

Rashi Peripherals

The market guru suggests investors apply for the issue for a small listing gain as well as for the long term. He has identified the following key points about the market-bound company: 

  • Positive:

    • Strong promoter background
    • Market leadership in most of the products
    • Strong relationship with global brands
    • Pan India multi-channel distribution
    • Reasonable valuations
  • Negative
    • Negative cash flows is a concern
    • High debt which will be reduced from IPO money
    • Big contingent liabilities
    • Low margin business

Jana Small Finance Bank

Singhvi suggests only risk-taking investors apply for the IPO for the long term. 

  • Positive:

    • Experienced management
    • Attractively priced equal to PSU Banks valuations
    • Strong growth track record
  • Negative:
    • Volatility in Profit trend
    • Higher credit cost
    • Lower NIMs, CASA ratio and capital adequacy ratio

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