Anil Singhvi Market Strategy: Nifty Bank blue-sky zone above 61,800 mark—How to trade Nifty50

Anil Singhvi Market Strategy Today: Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 index emerging at 25,700-25,765 levels and a strong buy zone at 25,575-25,650 levels on Thursday, February 19.

The market wizard sees support for the Nifty Bank at 61,100-61,250 levels and a strong buy zone at 60,750-60,950 levels.

How market guru Anil Singhvi sums up the trade setup:

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

• FII long positions at 22.82 per cent vs 21.27 per cent before Wednesday's session

• Nifty put-call ratio (PCR) on the higher side at 1.22 vs 1.13

• Nifty Bank PCR overbought at 1.49 vs 1.35; it's time to be alert at higher levels

• Fear gauge India VIX is down 3.5 per cent at 12.22

For the headline index, the market wizard expects a higher zone at 25,865-26,000 levels and a strong sell zone at 26,050-26,175 levels.

For the banking index, he expects a higher range at 61,700-61,800 levels, with a blue-sky zone above the 61,800 mark.

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

For existing long positions:

• Nifty intraday and closing stop loss at 25,625
• Nifty Bank intraday and closing stop loss at 61,000

For existing short positions:

• Nifty intraday and closing stop loss at 25,900
• Nifty Bank intraday stop loss at 61,800 and closing stop loss at 61,600

For new positions in Nifty50:

• The best range to buy Nifty is 25,625-25,725 with a stop loss at 25,550 for targets of 25,765, 25,815, 25,865, 25,900, 25,935, 26,000 and 26,050
• Aggressive traders can sell Nifty in the 25,900-26,000 range with a strict stop loss at 26,075 for targets of 25,865, 25,820, 25,765, 25,725, 25,650 and 25,625

For new positions in Nifty Bank:

• The best range to buy Nifty Bank is 61,100-61,250 with a stop loss at 60,900 for targets of 61,450, 61,550, 61,600 and 61,750

• Once the index is beyond 61,800, one should hold on to their long positions with a trailing stop loss

• There's no sell signal in Nifty Bank yet

• However, due to a high PCR, there may be some intraday correction

• Those looking to short must keep a suitable stop loss above the day's high or at 61,800

How to trade buzzing stocks | Tata Steel, MCX, HZL...

Buy Tata Steel futures for targets of Rs 212, Rs 216 and Rs 219 with a stop loss at Rs 205

• Steel stocks are looking very strong
• A price hike is expected in March
• European steel stocks have rallied
• ArcelorMittal shares have surged 65 per cent in three months
• On Wednesday, the Tata Steel stock rose 2.7 per cent; more upside is expected

Buy MCX futures for targets of Rs 2,365, Rs 2,385 and Rs 2,410 with a stop loss at Rs 2,315

• The exchange has relaxed its margins on gold and silver Futures
• This is seen boosting volumes
• On Wednesday, the stock rose 2.5 per cent; more short-covering moves expected

Buy Hindustan Copper shares for targets of Rs 574, Rs 579 and Rs 590 with a stop loss at Rs 560

• Copper rose 2.7 per cent globally on Wednesday
• The stock rose 3.6 per cent; one may put in place a strict stop loss

Buy Hindustan Zinc futures for targets of Rs 595 and Rs 605 with a stop loss at Rs 577

• Zinc has staged a recovery globally after four days of weakness

EDITOR'S TAKE | Is a rise due on Dalal Street?

• All signals are in place for market strength
• FII and DII inflows
• Global markets remain positive despite volatility
• Nifty Bank's strong leadership
• Signs of buying returning in midcap and smallcap stocks
• The market’s support base is gradually moving higher
• Volatility in the rupee has eased vs dollar
• The earnings season has been better than expected
• The sentiment is improving, with all major events now out of the way
• Strong support is coming from buying in metal stocks

Key risks

• Rising fear of a possible US attack on Iran
• Crude oil at a six-month high above $70/barrel
• Nifty Bank PCR in overbought territory at 1.49
• Strong resistance in Nifty at 26,000
• FII buying appears to be compulsive, not conviction-driven
• There is some uncertainty about when FIIs may start selling again

Anil Singhvi decodes market mood

• Nifty is spending time in the 25,500-25,600 range
• The market is gradually switching to the 'buy on dips' mode
• One should continue to buy on dips as long as it does not close below the 25,450 level
• Nifty Bank PCR is in overbought territory; one may buy near key support levels

Futures & options (F&O) ban

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