Anil Singhvi’s Strategy January 6: Oil companies, Metal & Banking sectors are Negative; Sell BankNifty Spot levels with Stop Loss 32,200

Amid negative global markets, domestic institutional investors (DIIs) and sentiment and neutral foreign institutional investors (FIIs) and futures & options (F&O) cues, the short-term trend of the Indian stock markets will continue to be positive on Monday, January 6, 2020.

Benchmark equity indices witnessed losses on Friday, January 3, 2020, as the geopolitical tensions between the US and Iran compelled investors to book recent profits. The Sensex and Nifty, both, lost around 0.4 per cent amid weakness in global stocks. Sensex at Bombay stock exchange fell 162.03 points, or 0.39%, to close at 41,464.61. Nifty at National Stock Exchange also slipped 55.55 points, or 0.45%, to settle at 12,226.65. Similarly, Bank Nifty was down by 374.60 points, or 1.15%, and closed at 32,069.25. 

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 6:

Next important support zone on Nifty is 12,100-12,150 and Bank Nifty is 31,700-31,800.

Strong selling zone on Nifty is 12,250-12,285 and Bank Nifty is 32,200-32,350. 

The small day range for trading on Nifty is 12,190-12,250, while medium and bigger ranges are 12,150-12,265 and 12,100-12,285 respectively. 

The small day range for trading on Bank Nifty is 31,950-32,200, while medium and bigger ranges are 31,800-32,250 and 31,750-32,350 respectively. 

For Existing Long Positions:

Nifty intraday and closing stop loss 12,150.

Bank Nifty intraday and closing stop loss 31,950.

For Existing Short Positions:

Nifty intraday and closing stop loss 12,300.

Bank Nifty intraday and closing stop loss 32,350. 

For New Positions:

Sell Nifty with a stop loss 12,300 and target 12,190, 12,150, 12,125. 

Buy Nifty near 12,125, only for aggressive traders, with a stop loss of 12,100 and target 12,150, 12,175, 12,200. 

Sell Bank Nifty with a stop loss of 32,200 and target 31,950, 31,800, 31,750. 

Buy Bank Nifty in 31,700-31,800 range with a stop loss of 31,650 and target 31,900, 31,950, 32,000. 

Put-Call Ratio (PCR) is 1.37 and the volatility index (VIX) is 12.70. 

Sectors:

Negative: Oil Companies, Metals, Banks

Still in F&O Ban: Yes Bank

Stock of the Day:

Sell Bank Nifty Spot levels: Stop loss 32,200 and target 31,950, 31,800, 31,750, 31,700. Weak Bank Nifty to turn weaker below 31,950.

Sell HPCL Futures: Stop loss 266 and target 257, 255, 251. Higher crude, weaker rupee to put pressures on MNCs.