Anil Singhvi strategy March 14: Important levels to track in Nifty50, Nifty Bank today

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support emerging at 21,800-21,950 and stronger support at 21,675-21,775 levels for the headline Nifty50 index on Thursday, March 14. For the Nifty Bank, he expects support to come in at 46,575-46,850 and a strong support zone at 46,325-46,425 levels.

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

• Global: Positive

• FII: Positive

• DII: Positive

• F&O: Neutral

• Sentiment: Neutral

• Trend: Positive

The market wizard expects a higher zone for the headline index at 22,025-22,125 and a strong sell zone at 22,200-22,300 levels. For the banking index, Singhvi expects a higher zone at 47,225-47,425 higher zone and a strong sell zone at 47,525-47,725 levels. 

ANIL SINGHVI MARKET STRATEGY 

Singhvi points out that the recent riot has highlighted weakness in leading midcap and smallcap stocks for the first time. It is a make-or-break session for the Nifty50 index wherein it must hold the 21,800-21,950 band, with the expiry of weekly derivative contracts due by the end of the session, he says.

He also highlights lighter positions in the Nifty Bank after its weekly expiry (Wednesday). 

Singhvi It is important for the banking index, which is far from major support placed at 45,700-46,000 levels (February lows), to cross the 46,900 mark on a closing basis. 

• FII index longs at 40 per cent vs 43 per cent the previous day
• Nifty put-call ratio (PCR) at 0.65 vs 0.95
• Nifty Bank PCR at 0.86 vs 0.71
• Volatility index India VIX up six per cent at 14.43

For existing long positions:

• Nifty intraday stop loss at 21,800 and closing stop loss at 21,950

• Nifty Bank intraday and closing stop loss at 46,800

For existing short positions:

• Nifty intraday stop loss at 22,125 and closing stop loss at 22,350

• Nifty Bank intraday stop loss at 47,500 and closing stop loss at 47,350

For new positions in Nifty:

• The best range to sell Nifty is 22,125-22,225 with a stop loss at 22,350 for targets of 22,050, 22,000, 21,950, 21,900, 21,850 and 21,825

• Aggressive traders can buy Nifty in the 21,800-21,900 range with a strict stop loss at 21,700 for targets of 21,950, 21,975, 22,000, 22,025, 22,075 and 22,125

For new positions in Nifty Bank:

• Aggressive traders can sell Nifty Bank in the 47,325-47,450 range with a strict stop loss at 47,550 for targets of 47,225, 47,025, 46,900, 46,725, 46,575 and 46,525

• Aggressive traders can buy Nifty Bank in the 46,525-46,725 range with a strict stop loss at 46,325 for targets of 46,875, 46,975, 47,125, 47,225, 47,325 and 47,450

How to trade midcap, smallcap stocks

Singhvi believes that more weakness in midcap and smallcap stocks cannot be ruled out though 60-70 per cent of the price correction has happened in most scrips in the segments. It will take a while for the wounds to heal in the minnows, he adds.

He suggests market participants keep a list of quality midcap and smallcap stocks and wait for month-end buying opportunities, and avoid rushing to go long in the segments. 

F&O ban update

• New in ban: RBL Bank
• Out of ban: Mahanagar Gas
• Already in ban: NALCO, Piramal Enterprises, AB Fashion, Hindustan Copper, Tata Chemicals, SAIL, Manappuram Finance, Zee Entertainment Enterprises

Stock of the day

Buy IPCA Labs futures with a stop loss at Rs 1,120 for targets of Rs 1,150, Rs 1,160 and Rs 1,175

• HSBC has double upgraded the stock to 'buy' from 'hold' 
• It has raised its target to Rs 1,335 from Rs 1,125

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