Anil Singhvi’s Market Strategy January 2: PSU is Positive; Auto & Metals are Negative

Indian stock markets, Sensex and Nifty, began the new year on a positive note and opened flat with a positive bias. On January 1, 2019, the S&P BSE Sensex ended 186.24 points, or 0.52 per cent, up at 36,254.57 while the Nifty 50 added 47.55 points, or 0.44 per cent, to settle at 10,910.10. Nifty Bank rose 232.20 points, 0.85 per cent, and closed at 27,392.40. 

Bharti Airtel (2.99 per cent) and HDFC (2.12 per cent) were the top gainers of the day, while Mahindra & Mahindra Limited (-3.84 per cent) was the biggest loser. 

Positive sentiment, future and option (F&O), neutral foreign institutional investors (FII) and domestic institutional investors (DIIs) and negative global markets suggest that the short-term trend of the Indian market will be positive on Wednesday, January 2, 2019. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 2: 
10,900 and 27,350 are going to be the deciding level on Nifty and Bank Nifty. 

The small and medium trading range on Nifty lies between 10,850-10,925 and 10,800-10,975 respectively. The extreme range stands at 10,775-11,000. 

The small and medium trading range on Bank Nifty lies between 27,250-27,450 and 27,150-27,500 while the extreme range resides at 27,000-27,650. 

Traders are advised to reduce their buying positions if the two indices, Nifty and Bank Nifty, close below the mark of 10,775 and 27,000. 

The market may go bullish if the two indices close above the mark of 11,050 and 27,400. 

Buy and Sell Strategy on Nifty
Sell Nifty with a stop loss of 11,000 and target of 10,850, 10,825. 
Buy Nifty in 10,825-10,850 range with a stop loss of 10,800 and target of 10,900, 10,925, 10,975. 

Buy and Sell Strategy on Bank Nifty
Sell Bank Nifty with a stop loss of 27,550 and target of 27,250, 27,150

Buy Bank Nifty in 27050-27150 range with a stop loss of 27,000 and target of 27,250, 27,350. 

The put-call ratio (PCR) stands at 1.57 and the volatility index (VIX) is 15.32.

Sectors in focus:
Positive: PSU
Negative: Auto, Metals
 

Stock of the Day:
Sell Eicher Motors Futures: Stop loss 23,400 and target 22,850, 22,650, 22,500. Lower than weak monthly sales numbers of Royal Enfield. 

Sell Hindalco Futures: Stop loss 226 and target 218, 215. Weak global outlook and CLSA Downgrade.