Anil Singhvi Market Strategy: How to trade Nifty50, Nifty Bank today—Should you touch Infosys-Anthropic theme?

Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index emerging at 25,575-25,650 levels and a strong buy zone at 25,375-25,500 levels on Wednesday, February 18.

The market wizard sees support for the Nifty Bank at 60,750-60,950 levels and a strong buy zone at 60,450-60,650 levels.

How market guru Anil Singhvi sums up the trade setup:

Add Zee Business as a Preferred Source

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

• FII long positions at 21.27 per cent vs 20.06 per cent before Tuesday's session

• Nifty put-call ratio (PCR) at 1.12 vs 1.11

• Nifty Bank PCR looks overbought at 1.39 vs 1.20; traders should stay alert at higher levels

• Fear gauge India VIX fell 5 per cent to 12.67

For the headline index, the market wizard expects a higher zone at 25,765-25,865 levels and a strong sell zone at 25,900-26,000 levels.

For the banking index, beyond the 61,250 mark, he expects the next big targets near 61,500 and 61,750.

ANIL SINGHVI MARKET STRATEGY | How to trade Nifty50 and Nifty Bank

For existing long positions:

• Nifty intraday stop loss at 25,550 and closing stop loss at 25,450
• Nifty Bank intraday stop loss at 60,750 and closing stop loss at 60,500

For existing short positions:

• Nifty intraday and closing stop loss at 25,825
• Nifty Bank intraday and closing stop loss at 61,300

For new positions in Nifty50:

• The best range to buy Nifty in the 25,575-25,650 range with a stop loss at 25,475 for targets of 25,725, 25,765, 25,815, 25,865, 25,900 and 25,935

• Aggressive traders can sell Nifty in the 25,815-25,935 range with a strict stop loss at 26,050 for targets of 25,765, 25,725, 25,700, 25,650, 25,575 and 25,475

For new positions in Nifty Bank:

• The best range to buy Nifty Bank in the 60,550-60,750 range with a stop loss at 60,450 for targets of 60,875, 60,950, 61,000, 61,150 and 61,225; once the index rises past the 61,300 mark, the next targets will be placed near 61,500 and 61,750

• One may hold on to their long positions with a trailing stop loss

• There is no sell signal in Nifty Bank yet

• However, due to a high PCR, it may stage an intraday correction

• Those looking to short must keep a suitable stop loss above the day's high

EDITOR'S TAKE | Should you grab IT stocks now? Is it a good time to play Infosys-Anthropic theme?

The market wizard points out that the Nifty IT index has receded 28 per cent below its lifetime high at a time when stocks in the basket have seen investor sentiment improving drastically following the announcement of the Infosys-Anthropic deal.

Singhvi suggests high-risk investors consider investing gradually in the IT space, sticking to companies offering dividend yields to the tune of 5-6 per cent.

Avoid direct play

The market guru believes that instead of direct equity, IT mutual funds may be better bet at this point.

Wipro appears the most attractive in terms of dividend yield, he says.

One must keep in mind that AI-related news could increase risk and cause sharp volatility in IT stocks, he warns.

Futures & options (F&O) ban

• Already in ban: SAIL, Sammaan Capital
• New in ban: None
• Out of ban: None