Anil Singhvi strategy January 17: 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 21,850-21,925 levels and a strong buy zone at 21,725-21,825 levels on Wednesday, January 17.

For the Nifty Bank, he expects support to come in at 47,350-47,500 levels and a strong buy zone at 47,025-47,250 levels.

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

• Global: Negative

• FII: Neutral

• DII: Neutral

• F&O: Neutral

• Sentiment: Neutral

• Trend: Positive

Singhvi expects a profit-booking zone for the Nifty50 at 22,000-22,100. The market guru sees a higher zone for the banking index emerging at 48,000-48,125 levels and a strong sell zone at 48,150-48,300 levels. 

ANIL SINGHVI MARKET STRATEGY 

• FII index longs unchanged at 66 per cent as the previous day

• Nifty put-call ratio (PCR) at 1.22 vs 1.52

• Nifty Bank PCR at 0.92 vs 1.25

• Volatility index India VIX down 1.5 per cent at 13.57

The market wizard points out that weak HDFC Bank results are likely to spoil the mood on Dalal Street, with pressure in the Nifty Bank. He also highlights weakness in the US and mixed flows by FIIs and DIIs. 

He expects strong support for the banking index at 47,150-47,350 levels, after the gauge failed to cross the 48,300-48,500 range on the upside. He sees strong support for the headline Nifty50 index coming in at 21,725-21,825 levels. 

Singhvi finds the Nifty50 better positioned than the banking gauge for buying at lower levels, but suggests investors only do so at important support levels. For positional traders, he finds the 47,000-47,250 range better for buying the Nifty Bank. 

For existing long positions:

• Nifty intraday and closing stop loss at 21,875

• Nifty Bank intraday and closing stop loss at 48,000

For existing short positions:

• Nifty intraday and closing stop loss at 22,150

• Nifty Bank intraday and closing stop loss at 48,300

For new positions in Nifty:

• Sell Nifty with a stop loss at 22,150 for targets of 21,900, 21,850, 21,825, 21,775, 21,750 and 21,725

• The best range to buy Nifty is 21,775-21,900 with a stop loss at 21,700 for targets of 21,965, 22,000, 22,025, 22,100 and 22,125

For new positions in Nifty Bank:

• Sell Nifty Bank with a stop loss at 48,300 for targets of 47,850, 47,725, 47,525, 47,425, 47,350, 47,250 and 47,150

• Aggressive traders can buy Nifty Bank; the best range to do so is 47,150-47,400 with a stop loss at 46,900 for targets of 47,500, 47,650, 47,725, 47,825, 47,875 and 48,000

F&O ban update

• New in ban: ABFRL, Ashok Leyland, NALCO

• Out of ban: BHEL, Escorts, SAIL

• Already in ban: Biocon, Bandhan Bank, Chambal Fertilisers, Delta Corp, Hindustan Copper, India Cements, Indus Tower, Metropolis, Piramal Enterprises, Polycab India, PVR INOX, Zee Entertainment Enterprises

Results reviews

HDFC Bank

Singhvi has a 'sell' call on HDFC Bank futures with a stop loss at Rs 1,700 for targets of Rs 1,640, Rs 1,615 and Rs 1,590.

• Extremely weak performance
• ADR down 6.7 per cent  
• Short only if the stock doesn't make a big gap-down opening
• Loan-deposit ratio is a big concern for the market

LTTS

The market wizard believes support for LTTS futures exists at Rs 5,180 and Rs 5,220 and a higher level at Rs 5,450. 

• Results below expectation but guidance maintained
• Since the worst is over for the company, one can buy the stock at a lower level

ICICI Securities

• Extremely strong performance
• Management should review their delisting offer to reward minority shareholders

Stocks of the day

Buy PNC Infratech shares with a stop loss at Rs 395 for targets of Rs 415, Rs 420 and Rs 425

• The company has received an order worth Rs 1,174 crore

Buy BHEL futures with a stop loss at Rs 197 for targets of Rs 210, Rs 215 and Rs 220; a higher target at Rs 240

• It is the cheapest stock in the capital goods sector
• The company won an order to the tune of Rs 15,000 crore recently
• The stock has exited an F&O ban

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