Anil Singhvi’s Strategy January 29: NBFC & Metal sectors are Positive; Buy Tata Coffee with Stop Loss 98

Amid positive global markets, domestic institutional investors (DIIs) and futures & options (F&O) and negative neutral foreign institutional investors (FIIs) cues, the short-term trend of the Indian stock markets will be Neutral on Wednesday, January 29, 2020, while sentiment is cautious.

Key benchmarks reversed the trend and slipped into negative terrain on Tuesday, January 28, 2020. Investors turned cautious ahead of the Union Budget on Saturday. Global stock markets too were under pressure after the death toll and incidence rate of the Wuhan coronavirus escalated over the weekend. The BSE benchmark Sensex today settled 188.26 points or 0.46 per cent lower, at 40,966.86. The broader Nifty too slipped before ending 63.20 points, or 0.52 per cent, lower at 12,055.80. Similarly, Bank Nifty was down by 76 points, or 0.23 per cent, and closed at 30,761.40. 

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 29:

Next important support zone on Nifty 12,000-12,025 and Bank Nifty is 30,500-30,650.

Selling zone on Nifty is 12,150-12,200 and Bank Nifty is 31,050-31,200. 

Small day range for trading on Nifty is 12,025-12,100, while the medium and bigger ranges are 12,000-12,150 and 11,950-12,200 respectively. 

Small day range for trading on Bank Nifty is 30,700-30,950, while the medium and bigger ranges are 30,625-31,050 and 30,500-31,200 respectively.

Put-Call Ratio (PCR) lower at 1.00, the volatility index (VIX) up 10% 17.30. Short covering expected from lower levels. 

For Existing Long Positions:

Nifty intraday and closing stop loss 12,000.

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 31,050.

For New Positions:

Buy Nifty with a stop loss of 12,000 and target 12,100, 12,150, 12,175. 

Sell Nifty in 12,150-12,200 range with a stop loss of 12,250 and target 12,120, 12,090, 12,050. 

Buy Bank Nifty with a stop loss of 30,600 and target 30,950, 31,050, 31,150. 

Sell Bank Nifty in 30,950-31,150 range with a stop loss of 31,250 and target 30,850, 30,800, 30,700. 

Out of F&O Ban: Yes Bank

Sectors:

Positive: Short covering in NBFC and Metals.

Result Review:

Cummins Futures: Good operational performance but internals weak. Big move only if breaks futures range 565-605.

Stock of the Day:

Buy Tata Coffee: Stop loss 98 and target 102.50, 104. Strong operational results.