Anil Singhvi’s Strategy October 23: Banks & FMCG are Negative; Sell Axis Bank Futures with Stop Loss 725

Amid positive foreign institutional investors (FIIs), neutral global market, futures & options (F&O), negative domestic institutional investor (DII) and cautious sentiment cues, the short-term trend of Indian share market will be positive on Wednesday, October 23, 2019.

Domestic stock markets tumbled on Tuesday, October 22, 2019, as traders booked profits after the six-session winning rally. The domestic indices lost more than half a per cent even as cues from global stocks were positive. The Sensex declined 334.54 points, or 0.85 per cent, to end below 39,000-mark at 38,963.84. The Nifty also fell 73.50 points, or 0.62 per cent, to settle at 11,588.35. However, Bank Nifty gained 290.90 points, or 1.02 per cent and closed at 29,411.15.

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A sharp fall in IT major Infosys, which declined by 16.65 per cent, put pressure on bourses. Selling in Tata Motors (down 4.02 per cent), Bajaj Finance (down 3.16 per cent) and Bharti Airtel (down 2.83 per cent) also weighed on key indices.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 23:

Day support zone on Nifty is 11,450-11,500 and Bank Nifty is 28,850-29,000.

Higher Zone on Nifty is 11,675-11,725 and Bank Nifty is 29,500-29,700.

Small day range for trading on Nifty stands at 11,550-11,650. The medium and bigger ranges lie between 11,500-11,700 and 11,450-11,725.

Small day range for trading on Bank Nifty stands at 29,150-29,500. The medium and bigger ranges lie between 29,000-29,700 and 28,850-29,850.

Fresh buy position only if Nifty and Bank Nifty sustain above 11,725, 29,700. 

For Existing Long Positions:

Nifty intraday and closing stop loss 11,550.

Bank Nifty intraday and closing stop loss 29,000. 

For Existing Short Positions:

Nifty intraday and closing stop loss 11,725.

Bank Nifty intraday and closing stop loss 29,700. 

For New Positions:

Sell Nifty with a stop loss of 11,725 and target 11,550, 11,500, 11,475.

Buy Nifty in 11,450-11,500 range with a stop loss of 11,400 and target 11,550, 11,600.

Sell Bank Nifty with a stop loss of 29,700 and target 29,150, 29,000, 28,850.

Buy Bank Nifty in 28,750-28,900 range with a stop loss of 28,700 and target 29,000, 29,100, 29,250. 

The put-call ratio (PCR) is 1.20 and the volatility index (VIX) is 13.86.

Sectors:

Positive: PSU

Negative: Banks, FMCG 

Result Analysis:

Sell Axis Bank Futures: Stop loss 725 and target 700, 690. Slippages still on the higher side, EPS cut expected. 

Stock of the Day:

Sell RBL Bank Futures: Stop loss 290 and target 265, 258, 250. Below 250, it can fall up to 235, 225 positional. Worst asset quality and future outlook.