Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 22,375-22,425 levels and a strong buy zone at 22,275-22,350 levels on Thursday, March 7. For the Nifty Bank, he expects support to come in at 47,725-47,875 levels and a strong buy zone at 47,475-47,550 levels.

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

  • Global: Neutral
  • FII: Positive
  • DII: Positive
  • F&O: Neutral
  • Sentiment: Positive
  • Trend: Positive

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The market wizard expects a "blue sky" zone in the Nifty above 22,525. For the banking index, Singhvi expects a higher zone at 48,150-48,300 levels and a Profit-booking zone at 48,350-48,500 levels. 

ANIL SINGHVI MARKET STRATEGY 

The market guru points out that the Sensex looks ready to take out the 75,000 mark, with the return of confidence among investors following Wednesday's spectacular recovery on Dalal Street, amid stable global markets, and good buying by FIIs and domestic funds. 

Singhvi believes it is the headline index's day to stage strong moves on Dalal Street, following in the Nifty Bank's footsteps. Investors are less likely to panic in Thursday's trade even if most midcap and smallcap stocks disappoint, he says.

Singhvi suggests investors buy heavily if the Nifty50 and the Nifty Bank cross 22,450 and 47,750 levels on a closing basis.

  • FII index longs at 40 per cent vs 35 per cent the previous day
  • Nifty put-call ratio (PCR) at 1.32 vs 1.23
  • Nifty Bank PCR at 1.05 vs 1.21
  • Volatility index India VIX down 0.5 per cent at 14.30

For existing long positions:

  • Nifty intraday and closing stop loss at 22,300
  • Nifty Bank intraday and closing stop loss at 47,450

For existing short positions:

  • Nifty intraday and closing stop loss at 22,450
  • Nifty intraday and closing stop loss at 22,525
  • Nifty Bank intraday and closing stop loss at 48,200

For new positions in Nifty:

  • The best range to buy Nifty is 22,350-22,425 with a stop loss at 22,275 for targets of 22,475 and 22,500; one can hold long positions above 22,525 with a trailing stop loss
  • Sell Nifty only if it breaks below 22,200

For new positions in Nifty Bank:

  • Buy Nifty Bank in the 47,575-47,725 range with a stop loss at 47,450 for targets of 47,875, 47,975, 48,150, 48,200, 48,300 and 48,350
  • Aggressive traders can sell Nifty Bank in the 48,350-48,500 range with a strict stop loss at 48,650 for targets of 48,250, 48,150, 48,000, 47,925, 47,825 and 47,725

What Fed Chairman said

The market wizard points out that Fed Chair Jerome Powell said nothing new in testimony to the US House Financial Services Committee, offering little clarity to the markets on the exact timing of widely expected reductions in benchmark interest rates. Powell hinted at a rate cut this year but also said the Fed is not ready yet. 

"We are just going to keep our heads down and do our jobs and try to deliver what the public is expecting from us. We wouldn't be declaring victory like that," the Fed Chair said, adding that rushing to lower rates can reignite inflation pressure and the US central bank will continue to monitor incoming data to take a call on the matter. 

He implied that the Fed is willing to reduce the rates but not before it is necessary. Read more on what Fed Chair said

While US equities gave mixed reactions to the Fed Chair's remarks, bond yields dropped to 4.1 per cent.

F&O ban update

  • New in ban: Mahanagar Gas, Manappuram Finance
  • Already in ban: Zee Entertainment Enterprises
  • Out of ban: None

Stocks of the day

Buy Syrma SGS Technology shares with a stop loss at Rs 514 for targets of Rs 530, Rs 538 and Rs 545

  • CLSA initiated coverage on SGX Tech with 'buy' rating, Rs 645 target 

Buy Avas Financiers shares with a stop loss at Rs 1,355 for targets of Rs 1,425, Rs 1,440 and Rs 1,455

Stock trading at attractive valuations after hitting a lifetime high of around Rs 3,000

  • A big brokerage is bullish on the company's business model
  • Accumulate from an investment perspective

Buy BEL futures with a stop loss at Rs 206 for targets of Rs 214.5 and Rs 218

  • UBS has raised target from Rs 205 to Rs 257
  • Citi has kept its target for the stock at Rs 247

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