Anil Singhvi's Market Strategy October 26: Yes Bank is Stock of the day; Tyre & NBFC are Negative

After witnessing swings in both directions, Indian markets finally closed in the red on October 25, 2018. Nifty 50 closed down by 99.85 points (0.98%) at 10,124.90 while Nifty Bank closed at 24,817.45 down by 246.75 points (-0.98%). S&P BSE Sensex went down by 343.87 points (1.01%) at 33,690.09.

IT stocks were the top gainers of the day with Wipro and HCL Tech leading the pack – up by 3.03% and 2.27% respectively. 

Amid negative foreign institutional investors (FII), neutral global market, domestic institutional investors (DIIs), future and option (F&O) and cautious sentiments, the short-term trend of the Indian market is set to be negative on Friday, October 26, 2018.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 26: 
Small and bigger trading range on Nifty lies between 10,075-10,225 and 24,600-25,075 respectively while the extreme range stands at 9,950-10,300. 

In the case of the BankNifty, the small and bigger trading range resides at 24,700-24,975 and 24,600-25,075 respectively. The extreme trading range stands at the mark of 24,500-25,250.

Traders are suggested to go for a short cover if the two indices, Nifty and BankNifty closes above the mark of 10,250 and 25,100 respectively. 

Buy and Sell Strategy on Nifty 

Buy Nifty in 10000-10075 range with a stop loss of 9,950 and target of 10,125-10,200-10,225. 

Sell Nifty in 10200-10225 range with a stop loss of 10,300 and target of 10,150-10,125.

Buy and Sell Strategy on BankNifty 

Buy BankNifty near 24700 with a stop loss of 24,500 and target of 24,975-25,075. 

Sell BankNifty in 25,075-25,200 range with a stop loss of 25,300 and target of 25,000-24,925-24,800. 

Sell BankNifty with a stop loss of 25,250 and target of 24900-24850-24700. 
 
Already In F&O ban: Adani Power

Out of Ban: Adani Enterprises, DHFL

Put-call ratio (PCR) stands at 1.49 and the volatility index (VIX) is 18.96. 

Sectors:

Negative: Tyre, NBFC

Result Analysis:

Bharti Airtel: Performance of India business is weak. The stock may fall further by 3-4%. 

Biocon: Buy on good results, book profit on gap up. Stop loss 615 and target 633, 640. 

Ceat: Weak operational performance. Will open with a big gap down of 4-5%, but don’t short at lower levels. 

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Stock of the Day:
Short Yes Bank: IL&FS exposure of 2460 crore. Stop loss 206 and target 192,186, 182.