Anil Singhvi’s Strategy July 9: Market is Neutral; Buy BF Utilities with Stop Loss 205

Amid positive domestic institutional investors (DIIs), neutral futures and options (F&O) and negative global markets and foreign institutional investors (FII) cues, the short-term trend of the domestic Indian markets will be neutral on Tuesday, July 9, 2019, while sentiment is negative. 

Earlier on Monday, July 8, 2019, Indian stocks reported their biggest one-day decline in nine months. The investors were disappointed by the budgetary announcement of taxing buybacks of securities (20 per cent), a surcharge on foreign portfolio investors (FPIs) and increasing public float (10 per cent) in listed companies. Sensex at Bombay Stock Exchange (BSE) declined 792.82 points or 2.01 per cent to close below 39,000-mark at 38,720.57. Nifty at National Stock Exchange (NSE) also fell 252.55 points or 2.14 per cent to trade under 11,600 level to settle at 11,558.60. Similarly, Bank Nifty also tanked 871.95 points or 2.77 per cent to settle at 30,603.85. 

See Zee Business video below:

#EditorsTake | देखिए FPI सरचार्ज और वित्त मंत्री #NirmalaSitaraman के बयान पर अनिल सिंघवी की राय।@AnilSinghviZEE #BudgetWithZEE pic.twitter.com/kgprmyLD8n

— Zee Business (@ZeeBusiness) July 9, 2019

Zee Business's Managing Editor Anil Singhvi's Market Strategy for July 9:
Nifty given a breakdown signal below 11,625. Trend Negative if Bank Nifty trades below 30,200.
The next important support range on Nifty and Bank Nifty resides at 11,350-11,400 and 30,200-30,300 respectively. 
The small and medium day range for trading on Nifty lies between 11,500-11,625 and 11,450-11,650 respectively. The bigger range stands at 11,350-11,725. 
The small and medium day range for trading on Bank Nifty lies between 30,500-30,750 and 30,350-30,900 respectively. The bigger range stands at 30,225-31,050. 
Put-Call Ratio (PCR) PCR 0.88 oversold, the volatility index (VIX) 13.85 very low.

For Existing Long Positions:
Nifty intraday and closing stop loss already triggered at 11,775. 
Bank Nifty intraday and closing stop loss already triggered at 31,250. 

For Existing Short Positions:
Nifty intraday stop loss 11,625 and closing stop loss at 11,725. 
Bank Nifty intraday stop loss 30,850 and closing stop loss at 31,050. 

For New Positions:
Sell Nifty with stop loss of 11,625 and target 11,525, 11,500, 11,450. 
Buy Nifty with strict stop loss with stop loss of 11,500 and target 11,600,11,625, 11,650. 
Sell Bank Nifty in 30,800-30,900 range with stop loss of 31,050 and target 30,650, 30,550, 30,350. 
Buy Bank Nifty in 30,250-30,350 range with stop loss of 30,200 and target 30,450, 30,500, 30,600. 

In F&O Ban: Reliance Capital, DHFL. 

Stock of the Day:
Buy BF Utilities: Stop loss 205 and target 215, 225. Political Naatak in Karnataka is sentimentally positive for the company.