Anil Singhvi strategy on Budget day: Key market triggers, important Nifty50, Nifty Bank levels to track pre- and post-Budget today

Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 benchmark to come in at 17,550-17,600 ahead of the Budget announcements on February 1 — the day Finance Minister Nirmala Sitharama reveals what's in store for the economy, the market and the common man in her Union Budget for 2023-24, followed by a higher zone in the 17,775-17,850 area.

For the post-Budget period, he sees support coming in for the 50-scrip index at 17,400-17,500 levels, and, further below, a strong support zone in the 17,100-17,175 band. 

For the Nifty Bank — whose 12 constituents include SBI, HDFC Bank, Bank of Baroda, Kotak Mahindra Bank, Axis Bank and ICICI Bank, Anil Singhvi expects pre-Budget support for the Nifty50 at 40,350-40,400 levels, followed by a higher zone at 40,900-41,150 levels. 

For the banking index, he sees support coming in at 40,000-40,150 after Budget announcements, and a strong support zone in the 39,425-39,625 area.  

Higher post-Budget levels for Nifty, Nifty Bank

For the 50-scrip headline index, Anil Singhvi expects a higher zone at 17,875-18,000 levels after the presentation of Budget, and a profit booking zone in the 18,125-18,200 band. 

For the Nifty Bank, he sees a higher zone coming in at 41,400-41,650 levels, and a profit booking zone in the 42,175-42,300 area.

Here's how Anil Singhvi sums up the market setup on February 1 — the Budget 2023 day: 

F&O 

• FIIs index longs unchanged at 18 per cent on Wednesday as the previous day
• Put-call ratio (PCR) at 0.80 on Wednesday vs 0.77 the previous day
• Nifty Bank PCR at 0.67 vs 0.54 the previous day
• Fear index India VIX down 4.7 per cent at 16.88

Anil Singhvi market strategy

For existing long positions:

• Nifty50 intraday stop loss at 17,400 and closing stop loss at 17,600

• Nifty Bank intraday stop loss at 40,100 and closing stop loss at 40,300

For existing short positions:

• Nifty intraday stop loss at 17,900 and closing stop loss at 18,000
• Nifty Bank intraday stop loss at 41,000 and closing stop loss at 41,650

Pre-Budget new positions in Nifty:

• Buy Nifty with a stop loss at 17,525 for targets of 17,700, 17,725, 17,775, 17,800, 17,825 and 17,850

• Sell Nifty in the 17800-17900 range with a stop loss at 18,000 for targets of 17,750, 17,700, 17,650, 17,600 and 17,500

Pre-Budget new positions in Nifty Bank:

• Buy Nifty Bank with a stop loss at 40,100 for targets of 40,800, 40,900, 41,150, 41,275, 41,400, 41,550 and 41,650

• Sell Nifty Bank in the 41,400-41,650 range with a stop loss at 41,800 for targets of 41,200, 40,900, 40,825, 40,625, 40,500, 40,375 and 40,150

Sectors in focus

Anil Singhvi expects the manufacturing, insfrastructure, cement, railway, clean pwer and banking sectors to be in focus on February 1.

Stock of the day

Buy Indian Hotels

Positive results

Cholamandalam Finance, Shriram Finance, Max Financial

Cash stocks: Spandana Sphoorty, KPIT Tech, Paradeep Phosphates and Apar Industries

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