Anil Singhvi’s Strategy January 21: Market Trend is Neutral; Sentiment is Cautious

Amid neutral, foreign institutional investors (FIIs), futures & options (F&O) and negative global markets and domestic institutional investors (DIIs) cues, the short-term trend of the Indian stock markets will be neutral on Tuesday, January 21, 2020, while sentiment is cautious.

After attaining record high levels in early trade, key equity barometers reversed the trend and ended near the day's low on Monday, January 20, 2020, with banking stocks and heavyweights like RIL leading the losses. The Nifty settled below the 12,250 level. Selling emerged at record high levels due to concerns over stretched valuations. The barometer BSE Sensex fell 416.46 points, or 0.99%, to 41,528.91. Nifty Bank lost 127.80 points, or 0.98%, and settled at 12,224.55. Similarly, Bank Nifty dropped 494.30 points, or 1.56%, to 31,096.35.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 21:

The small day range for trading on Nifty is 12,200-12,250, while the medium and bigger ranges are 12,150-12,300 and 12,125-12,325 respectively. 

The small day range for trading on Bank Nifty is 31,000-31,250, while the medium and bigger ranges are 30,800-31,450 and 30,700-31,650 respectively.

Fresh Buying and big short-covering ONLY IF sustains above 12,325 and 31,500 level. 

Put-Call Ratio (PCR) is 1.13, alert at lower levels, the volatility index (VIX) is 15.41.

For Existing Long Positions:

Nifty intraday and closing stop loss 12,200. 

Bank Nifty intraday and closing stop loss 31,000. 

For Existing Short Positions:

Nifty intraday and closing stop loss 12,325. 

Bank Nifty intraday and closing stop loss 31,500. 

For New Positions:

Sell Nifty near 12,300 with a stop loss of 12,350 and target 12,250, 12,225, 12,200. 

Buy Nifty in 12,125-12,150 range with a stop loss of 12,100 and target 12,200, 12,225, 12,250.  

Sell Bank Nifty in 31,450-31,600 range with a stop loss of 31,700 and target 31,250, 31,100, 31,000. 

Buy Bank Nifty in 30,700-30,800 range with a stop loss of 30,650 and target 31,000, 31,100, 31,250. 

Still in F&O Ban: Yes Bank