Anil Singhvi’s Market Strategy December 24: Market is Neutral; Buy OMC’s on dips

Equity benchmark Sensex tumbled 689.60 points, or 1.89 per cent, after opening on a flat note on Friday, December 21, 2018. The sudden selloff forced the 30-pack index to decline and hit the intraday low of 35,742.07 against the previous close of 36,431.67. 

NSE’s Nifty 50 slipped 197.70 points or 1.81 per cent, to 10,754 while Nifty Bank also slipped by 405.45 points or 1.49 per cent to close at 26,869.65. 

HPCL, which rose 2.31 per cent, was the top gainer of the day while IOC, UPL and Adani ports were the top losers of the day and they declined 5.44 per cent, 4.55 per cent and 3.71 per cent respectively. 

Amid negative global, domestic institutional investors (DIIs), foreign institutional investors (FII), cautious sentiment and neutral future and option (F&O) cues, the short-term trend of Indian market will be neutral on December 24, 2018.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for December 24:

10,800 and 27,000 are deciding levels on Nifty and Bank Nifty. 

The small trading range on Nifty stands at 10,700-10,800 while the medium and extreme ranges lie between 10,650-10,850 and 10,550-10,900. 

In the case of the Bank Nifty, the small and medium trading range lies between 26,800-27 and 26,650-27,050. The extreme range stands at 26,500-27,200. 

Next important support zone on the two indices, Nifty and Bank Nifty, stands at the mark of 10,500 and 26,500. 

Traders can increase their buying positions if the two indices closed above the mark of 10,900 and 27,200. 

Sell and Buy Strategy on Nifty

Sell Nifty with a stop loss of 10,850 and target of 10,700, 10,650, 10,600. 

Buy Nifty with a stop loss of 10,650 and target of 10,800, 10,825, 10,550. 

Sell and Buy Strategy on Nifty Bank

Sell BankNifty with a stop loss of 27,050 and target of 26,800, 26,650, 26,500. 

Buy Bank Nifty near 26500 with a stop loss of 26,400 and target of 26,650, 26,750. 

Out of F&O ban: Reliance Capital 

3 Already in Ban: Adani Enterprises, Adani Power, Jet Airways

Watch Zee Business Tweet Video here:

#NewsImpact | पूजा त्रिपाठी बता रही हैं कि #Sensex में आज से शामिल होंगे #HCLTech और #BajajFinance और खबरों के दम पर किन शेयरों में दिख सकता है एक्शन। @AnilSinghviZEE @poojat_0211 @deepaliranaa #stockstowatch #stocksinne pic.twitter.com/brwj8pyErb

— Zee Business (@ZeeBusiness) December 24, 2018

Sectors in focus:

Negative:

Cement: No decision on reduction of GST rates.

Tyre: Book profit in long positions as GST reduced only on retreaded tyres.

OMC: Buy on dips

The put-call ratio (PCR) stands at 1.66 and the volatility index (VIX) is 14.33.

Stock of the Day:

Buy Infosys Futures: Stop loss 640 and target 655, 670.

Sell Ambuja Cement Futures: Stop loss 225 and target 218, 215.

Sell Ceat Futures: Stop loss 1330 and target 1310, 1295.

Sell DLF Futures: Stop loss 188 and target 183, 180.