Anil Singhvi strategy January 31: 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 21,425-21,500 levels and a strong buy zone at 21,250-21,350 levels on Wednesday, January 31. For the Nifty Bank, he expects support to come in at 45,075-45,200 levels and a strong base at 44,875-45,000 levels.

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

• Global: Positive

• FII: Negative

• DII: Positive

• F&O: Neutral

• Sentiment: Positive

• Trend: Positive

Singhvi expects a higher zone for the Nifty50 at 21,575-21,650 levels and a sell zone at 21,675-21,750 levels. For the banking index, he expects a higher zone at 45,550-45,725 and a strong sell zone at 45,975-46,175 levels. 

ANIL SINGHVI MARKET STRATEGY 

The market wizard expects market participants to exercise caution on Dalal Street ahead of three important events due this week: the presentation of the Union Budget in Parliament, the weekly derivatives expiry, and a Fed meeting. 

FIIs appear to be confused, as reflected in mixed trends in their daily fund flows on Dalal Street, says Singhvi. 

He points out the emergence of profit-taking at the upper end of the trading range, and expects sectoral and stock-specific action to remain in focus ahead of the Budget day. 

• FII index longs at 24 per cent vs 25 per cent the previous day
• Nifty put-call ratio (PCR) at 0.82 vs 1.21
• Nifty Bank PCR at 0.72 vs 0.85
• Volatility index India VIX up three per cent at 16.1 

For existing long positions:

• Nifty intraday and closing stop loss at 21,425

• Nifty Bank intraday and closing stop loss at 45,000

For existing short positions:

• Nifty intraday stop loss at 21,625 and closing stop loss at 21,750

• Nifty Bank intraday and closing stop loss at 45,725

For new positions in Nifty:

• The best range to buy Nifty is 21,350-21,450 with a stop loss at 21,225 for targets of 21,500, 21,525, 21,575, 21,625, 21,650 and 21,675

• The best range to sell Nifty is 21,625-21,725 with a stop loss at 21,825 for targets of 21,575, 21,525, 21,500, 21,450, 21,425 and 21,350

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 44,875-45,025 with a stop loss at 44,800 for targets of 45,100, 45,175, 45,350, 45,475, 45,550 and 45,650

• Aggressive traders can sell Nifty Bank in the 45,550-45,675 range with a strict stop loss at 45,750 for targets of 45,450, 45,375, 45,200, 45,125, 45,025 and 44,875

F&O ban update

• New in ban: Zee Entertainment Enterprises

• Already in ban: None

• Out of ban: None

What to focus on ahead of Budget?

The market guru suggests investors keep tabs on the following key areas: 

• Railway, defence, infrastructure, cement sectors
• Small home loan providers

RESULTS REVIEWS

Sell SRF futures with a stop loss at Rs 2,266 for targets of Rs 2,220, Rs 2,190 and Rs 2,166

• Results below estimates
• Chemical business disappoints again
• Expected to improve in Q4
• Don’t short if stock opens with a big gap
• Can buy on a big fall

Buy Dr Reddy’s futures with a stop loss at Rs 5,850 for targets of Rs 5,925 and Rs 5,975

• Strong US business
• Domestic doing very well

Sell L&T futures with a stop loss at Rs 3,700 for targets of Rs 3,625 and Rs 3,590

• Strong revenue but profit below estimates
• Strong international business but domestic business is weak

Stocks of the day

Sell Voltas futures with a stop loss at Rs 1,040 for targets of Rs 1,013, Rs 1,000 and Rs 992

• Despite strong revenue growth, weak operational performance
• Profit and EBITDA below estimates

Buy Kaynes Technology shares with a stop loss at Rs 2,800 for targets of Rs 2,900, Rs 2,925 and Rs 2,945

• Results strong 
• Revenue, EBITDA, PAT at record high

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