Anil Singhvi’s Strategy January 27: Metals & Banks are Negative today; Buy OMCs on dips

Amid negative global markets, neutral foreign institutional investors (FIIs), domestic institutional investors (DIIs) and futures & options (F&O) cues, the short-term trend of the Indian stock markets will be neutral on Monday, January 27, 2020, while the sentiment will remain cautious.

The domestic stock markets closed in the green on Friday, January 24, 2020, on broad-based buying support. Firmness in private banks boosted key indices higher. Yes Bank (up 3.91 per cent), the top gainer of the day was followed by UltraTech Cement (up 2.58 per cent), Britannia (up 2.44 per cent), Tech Mahindra (up 2.33 per cent) and Axis Bank (up 2.21 per cent) among others. 

The Sensex at the Bombay Stock Exchange climbed 226.78 points, or 0.55 per cent, to end at 41,613.19. The Nifty at the National Stock exchange advanced 67.90 points, or 0.56 per cent, to 12,248.25. Bank Nifty gained 237.70 points, or 0.77 per cent, to close at 31,241.75. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 27:

Important support zone on Nifty is 12,075-12,100 and Bank Nifty is 30,700-30,850.  

The small day range for trading on Nifty is 12,150-12,200, while the medium and bigger trading ranges are 12,100-12,250 and 12,075-12,275 respectively.

The small day range for trading on Bank Nifty is 31,000-31,200, while the medium and bigger trading ranges are 30,850-31,200 and 30,700-31,350 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 12,150.

Bank Nifty intraday and closing stop loss 31,000. 

For Existing Short Positions:

Nifty intraday and closing stop loss 12,275. 

Bank Nifty intraday and closing stop loss 31,400.

For New Positions:

Sell Nifty with a stop loss of 12,275 and target 12,175, 12,150, 12,100, 12,075.

Buy Nifty near 12,100 with a stop loss of 12,075 and target 12,150, 12,175, 12,200. 

Sell Bank Nifty with a stop loss of 31,250 and target 31,000, 30,950, 30,850, 30,700. 

Buy Bank Nifty near 30,700 with a stop loss of 30,600 and target 30,850, 30,950, 31,000, 31,075. 

Still in F&O Ban: Yes Bank

Sectors:

Positive: Buy OMC on dips.

Negative: Metals, Banks.

Result Review:

ICICI Bank Futures will hover between 420-455 range. Operationally strong results but profit-booking expected at higher levels.

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Stock of the Day:

Sell Bank of Baroda Futures: Stop loss 96.50 and target 92.50, 91. High slippages, weak asset quality.