Anil Singhvi’s Strategy January 28: Buy Oil Companies on dips; Metals, Banks & NBFC are Negative, Sell them on rise

Amid negative global markets and sentiments, 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 Tuesday, January 28, 2020.

The domestic equity markets finished in the red on Monday, January 27, 2020, amid fears about the economic impact of fast-spreading coronavirus, which started in China's Wuhan city. The deadly virus has so far claimed lives of at least 80 people in China. At the stock markets, the Sensex at the Bombay Stock Exchange tumbled 458.07 points, or 1.1 per cent, to end at 41,155.12. The Nifty at the National Stock exchange fell 129.25 points, or 1.06 per cent, to 12,119. Bank Nifty lost 404.35 points, or 1.29 per cent, and closed at 30,837.40. In the broader market, the BSE Midcap index lost 0.40 per cent and closed at 15,759.01 and the Smallcap index ended flat at 14,850.39.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 28:

Next support zone on Nifty is 12,000-12,025 and Bank Nifty is 30,200-30,300.  

Selling zone on Nifty is 12,225-12,275 and Bank Nifty is 31,200-31,350. 

The small day range for trading on Nifty is 12,075-12,150, while the medium and bigger ranges are 12,025-12,200 and 12,000-12,250 respectively.  

The small day range for trading on Bank Nifty is 30,700-30,950, while the medium and bigger ranges are 30,625-31,000 and 30,500-31,150 respectively. 

Put-Call Ratio (PCR) lower at 1.11, the volatility index (VIX) up 10% 17.18, Don’t short at lower levels.

For Existing Long Positions:

Nifty intraday and closing stop loss 12,075.

Bank Nifty intraday and closing stop loss 30,600. 

For Existing Short Positions:

Nifty intraday and closing stop loss 12,225.

Bank Nifty intraday and closing stop loss 31,000.

For New Positions:

Sell Nifty in 12,150-12,200 range with a stop loss of 12,250 and target 12,110, 12,075, 12,025. 

Buy Nifty in 12,000-12,025 range with a stop loss of 11,975 and target 12,075, 12,100, 12,125. 

Sell Bank Nifty in 31,000-31,150 range with a stop loss of 31,250 and target 30,850, 30,800, 30,700. 

Buy Bank Nifty in 30,625-30,700 range with a stop loss of 30,500 and target 30,800, 30,850, 30,950.

Still in F&O Ban: Yes Bank

Sectors:

Positive: Oil Cos buy on dips.

Negative: Metals, Banks, NBFC sell on a rise.

Result Review:

HDFC Ltd. Futures: Results and provisioning as per expectations. 2350-2375 support zone, 2440-2465 Higher range. Cover shorts on gap down opening.

Stock of the Day:

Buy Indigo Futures: Strong revenue but lower operating profit. Buy on gap down opening. 1430-1455 strong support, 1550-1570 higher range.