Anil Singhvi strategy January 9: 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 21,450-21,525 levels and a strong buy zone at 21,350-21,400 levels on Tuesday, January 9. 

For the Nifty Bank, he expects support at 47,200-47,375 levels and a strong buy zone at 46,925-47,100 levels.

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

• Global: Positive

• FII: Negative

• DII: Neutral

• F&O: Positive

• Sentiment: Neutral

• Trend: Positive

Singhvi expects a higher zone for the Nifty50 at 21,600-21,675 levels and a strong sell zone at 21,700-21,775 levels. For the banking index, he sees a higher zone emerging at 47,725-47,850 levels and a strong sell zone at 48,000-48,150 levels. 

ANIL SINGHVI MARKET STRATEGY 

• FII index longs at 62 per cent vs 67 per cent the previous day

• Nifty put-call ratio (PCR) at 0.84 vs 1.08

• Nifty Bank PCR at 0.57 vs 0.77

• Volatility index India VIX up 6.5 per cent at 13.46 

The market wizard points out that domestic funds have stopped selling equity though FIIs are selling heavily in the futures market, amid strength on Wall Street and easing crude oil rates. He suggests buying at key support levels and rapid profit-taking at higher levels. 

The PCR of Nifty Bank, at 0.57, appears to be oversold and indicates imminent short-covering, and one can expect big moves in the Nifty50 either in the 21,500-21,800 range or beyond 21,450 21,850 levels on either side, says Singhvi.

He expects the Nifty Bank to consolidate in the 47,500-48,500 range, and big moves beyond 47,200 and 48,700 levels on either side.

The market expert is of the view that lower levels may signal a sharp fall ahead, which is unlikely. Similarly, higher levels could warrant a sharp upmove, which is also unlikely. It will be difficult to take a contrarian trade, with buying expected to continue in midcap and smallcap shares.

For existing long positions:

• Nifty intraday and closing stop loss at 21,450

• Nifty Bank intraday and closing stop loss at 47,375

For existing short positions:

• Nifty intraday stop loss at 21,625 and closing stop loss at 21,800

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

For new positions in Nifty:

• Buy Nifty with a stop loss at 21,450 for targets of 21,550, 21,600, 21,625, 21,650, 21,675 and 21,725

• The best range to sell Nifty is 21,650-21,750 with a stop loss at 21,850 for targets of 21,625, 21,600, 21,550, 21,515 and 21,450

For new positions in Nifty Bank:

• Buy Nifty Bank with a stop loss at 47,350 for targets of 47,650, 47,725, 47,850, 48,000, 48,075, 48,150 and 48,200

• The best range to sell Nifty Bank is 48,000-48,200 with a stop loss at 48,400 for targets of 47,850, 47,725, 47,650, 47,525 and 47,450

F&O ban update

• New in ban: Hindustan Copper, Bandhan Bank

• Already in ban: Piramal Enterprises, Chambal Fertilisers, India Cements, GNFC, Escorts, NALCO, Delta Corp, IEX, SAIL, Zee Entertainment Enterprises, Balrampur Chini

• Out of ban: None

Stocks of the day

Buy Bajaj Auto futures with a stop loss at Rs 6,945 for targets of Rs 7,185, Rs 7,275 and Rs 7,340

• The board gives nod for a Rs 4,000-crore share buyback at Rs 10,000 apiece
• The price and size of the buyback is attractive

Buy Metropolis shares with a stop loss at Rs 1,645 for targets of Rs 1,680, Rs 1,690 and Rs 1,705

• Strong quarterly update

Stocks of the day

Buy HPCL futures with a stop loss at Rs 420 for targets of Rs 438 and Rs 444

• Crude oil has eased below $76/barrel
• The stock is in a strong upmove

Buy PI Industries shares with a stop loss at Rs 3,370 for targets of Rs 3,455, Rs 3,470 and Rs 3,500

• Buy chemical stocks on dips
• Jefferies maintains buy on the stock with a raised target of Rs 4,290 instead of the Rs 4,120 earlier

Jyoti CNC Automation IPO: Should you subscribe?

Singhvi suggests only high risk-taking investors apply for the IPO. He points out the following key points about the company: 

Positive 

• Experienced promoters
• Third largest market share in India
• Order book huge at Rs 3,300 crore
• Plan to reduce debt substantially
• Strong growth outlook

Negative 

• Loss making company in last three years
• Higher debt compared with peers
• Weak financials due to the poor performance of its French subsidiary
• Reasonable valuations
• No immediate plan to increase capacity

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