Anil Singhvi’s Strategy September 24: PSU, Cement & Auto sectors are Positive; Buy Ashok Leyland Futures with Stop loss of 73

Amid positive global market, foreign institutional investors (FIIs) and sentiment, neutral domestic institutional investors (DIIs) and futures and options (F&O) cues, the short-term trend of the domestic Indian share market will continue to be positive on Tuesday, September 23, 2019.

Riding over the wave of optimism triggered by the government's move to slash corporate tax rates for domestic companies, the domestic stock market soared almost 3 per cent yesterday on Monday, September 23, 2019. The Sensex regained 39,000-mark while the Nifty reclaimed 11,600 level. The Sensex at Bombay Stock Exchange climbed 1075.41 points, or 2.83 per cent, to close at 39,090.03. The Nifty at National Stock Exchange also gained 326 points, or 2.92 per cent, to settle at 11,600.20. Bank Nifty gained 1,584.65 points, or 5.41 per cent and closed at 30,566.20.

In the previous session, both indices, Sensex and Nifty, hit the highest gains in a decade and witnessed a jump of 5.3 per cent after Finance Minister Nirmala Sitharaman's announcement of a reduction in corporate tax rates. In these two sessions, both stocks gained more than eight per cent.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for September 24:

Strong support zone on Nifty and Bank Nifty stands at 11,375-11,475 and 29,800-30,000 respectively.
Small day range for trading on Nifty stands at 11,475-11,700 and the medium day range resides at 11,375-11,800.
Small day range for trading on Bank Nifty stands at 30,500-30,800 and the medium day range resides at 30,000-31,000.

For Existing Long Positions:
Nifty intraday and closing stop loss 11,450.
Bank Nifty intraday and closing stop loss 29,750.

For Existing Short Positions:
Nifty intraday and closing stop loss 11,700.
Bank Nifty intraday and closing stop loss 30,800.

For New Positions:
Buy Nifty with a stop loss of 11,450 and target 11,675, 11,750, 11,800.
Buy Bank Nifty with a stop loss of 30,450 and target 30,800, 30,950.  
Sell Bank Nifty near 31,000 with a stop loss of 31,100 and target 30,800, 30,600.

Sectors:
Positive: PSU, Cement, Auto
No stock in F&O Ban

The put-call ratio (PCR) is at 1.51 and the volatility index (VIX) is 16.79.

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Stock of the Day: Sell Aurobindo Pharma Futures: Stop loss 620 and target 600, 592. SEBI imposed a penalty of Rs 23 crore for insider trading.

Aaj Ka Hero: Buy Ashok Leyland Futures: Stop loss 73 and target 77, 79, 81. The government may announce a scrappage policy soon.