Anil Singhvi strategy March 12: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support emerging at 22,200-22,275 and a strong buy zone at 22,025-22,125 levels for the headline Nifty50 index on Tuesday, March 12. For the Nifty Bank, he expects support to come in at 47,025-47,125 levels and a strong support zone at 46,725-46,900 levels.

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

• Global: Positive

• FII: Neutral

• DII: Neutral

• F&O: Neutral

• Sentiment: Neutral

• Trend: Positive

The market wizard expects a higher zone for the headline index at 22,375-22,475 levels and a "blue sky zone" above 22,525. For the banking index, Singhvi expects a higher zone at 47,575-47,725 levels and a strong sell zone at 47,825-47,950 levels. 

ANIL SINGHVI MARKET STRATEGY 

• FII index longs at 41 per cent vs 42 per cent the previous day
• Nifty put-call ratio (PCR) at 0.94 vs 1.27
• Nifty Bank PCR at 0.72 vs 0.91
• Volatility index India VIX up three per cent at 14.00

The market wizard points out that sentiment appears to be weak, affected by weakness in broader segments, even with the indices close to their lifetime highs amid mixed signals from global equities and fund flows. 

He suggests trimming positions in the market if the Nifty50 and the Nifty Bank give up 22,300 and 47,250 levels on a closing basis. Singhvi expects strong moves to return in the market once the indies take out 22,500 and 48,000 levels on the upside, respectively.

He expects strong support for the Nifty50 at 21,850-22,000 levels. 

Midcap, smallcap strategy

Market regulator Sebi has raised concern about inexplicably sharp gains in smallcap and midcap shares with SME stocks under the lens. 

Market participants need to be cautious about poor quality stocks commanding high valuations, he highlights. 

Singhvi also points out that domestic funds eased their buying positions in the segments in March so far. 

Typically, the month of March sees lower funding by banks and brokers, he adds. 

How to trade in these segments

The market guru suggests investors prepare a list of good quality shares and wait for buying opportunities expected towards the end of the month.

He advises investors to exercise caution in both midcap and smallcap segments, without rushing to buy, and hold on to their positions taken in March the next month. 

For existing long positions:

• Nifty intraday stop loss at 22,200 and closing stop loss at 22,300

• Nifty Bank intraday stop loss at 470,00 and closing stop loss at 47,200

For existing short positions:

• Nifty intraday and closing stop loss at 22,525

• Nifty Bank intraday stop loss at 47,600 and closing stop loss at 48,000

For new positions in Nifty:

• The best range to buy Nifty is 22,125-22,250 with a stop loss at 22,000 for targets of 22,300, 22,335, 22,360, 22,400, 22,425 and 22,475

• The best range to sell Nifty is 22,375-22,475 with a stop loss at 22,550 for targets of 22,335, 22,300, 22,275, 22,225, 22,200 and 22,125

For new positions in Nifty Bank:

• Aggressive traders can buy Nifty Bank in the 46,900-47,025 range with a strict stop loss at 46,700 for targets of 47,125, 47,225, 47,325, 47,450, 47,525 and 47,725

• Aggressive traders can sell Nifty Bank in the 47,575-47,725 range with a strict stop loss at 47,850 for targets of 47,525, 47,450, 47,325, 47,225, 47,125 and 47,025

F&O ban update

• New in ban: AB Fashion, Hindustan Copper
• Already in ban: Tata Chemicals, SAIL, Mahanagar Gas, Manappuram Finance, Zee Entertainment Enterprises
• Out of ban: None

Stock of the day

Sell Apollo Tyres futures with a stop loss at Rs 518 for targets of Rs 498 and Rs 492

• Prices of tyres reduced recently
• Increase in raw material cost to impact margin

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