Anil Singhvi’s Strategy January 7: Market Trend is Neutral; Buy HPCL Futures with Stop Loss 243

Amid cautious global markets and sentiment, negative foreign institutional investors (FIIs), neutral 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 7, 2020.

Benchmark domestic stocks on Monday, January 6, 2020, plunged around 1.9 per cent amid weakness in global equity indices. The Sensex witnessed losses to trade below 41,000 mark and Nifty dropped to trade under 12,000 level as an escalation in tensions in West Asia fuelled intense sell-off in stocks and surge in crude prices. The BSE Sensex declined 787.98 points, or 1.90%, to close at 40,676.63. The Nifty at the National Stock Exchange also fell 233.60 points, or 1.91%, to settle at 11,993.05. Similarly, Bank Nifty fell by 832.10 points, or 2.59%, to settle at 31,237.15.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 7:

PCR lower at 1.12, VIX up by 16% at 14.78. Markets to calm down a little

Next important support zone on Nifty is 11,800-11,850 and Bank Nifty is 30,800-31,000.

Strong selling zone on Nifty is 12,125-12,200 and Bank Nifty is 31,500-31,750.

The small day range for trading on Nifty is 11,975-12,100, while the medium and bigger ranges are 11,900-121,50 and 11,825-12,200 respectively.

The small day range for trading on Bank Nifty is 31,150-31,500, while the medium and bigger ranges are 31,000-31,600 and 30,800-31,750 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 11,950.

Bank Nifty intraday and closing stop loss 31,000.

For Existing Short Positions:

Nifty intraday and closing stop loss 12,125.

Bank Nifty intraday and closing stop loss 31,500.

For New Positions:

Buy Nifty with a stop loss of 11,950 and target 12,100, 12,125, 12,150.

Sell Nifty in 12,125-12,200 range with a stop loss of 12,250 and target 12,050, 12,000, 11,975.

Buy Bank Nifty with a stop loss of 31,000 and target 31,450, 31,600, 31,700.

Sell Bank Nifty in 31,500-31,700 range with a stop loss of 31,800 and target 31,400, 31,300, 31,250.

Still in F&O Ban: Yes Bank

Stock of the Day:

Buy HPCL Futures: Stop loss 243 and target 250, 253. Lower Crude to trigger short covering.