Anil Singhvi's Market Strategy October 31: Banks, NBFC are Positive today; Pharma Sector is Negative

After a strong show on Monday, the domestic markets ended in the red on Tuesday, October 30, 2018. Nifty was down by 52.45 points (0.51%) and closed at 10,198.40 while Nifty Bank closed 151.95 points (0.61%) down at 24,807.75. Similarly, S&P BSE Sensex was down by 176.27 points (0.52%) and closed at 33,891.13. 

Tech Mahindra and Zee Entertainment Enterprises were the top gainers of the day as they were up by over 3.12% and 2.76% respectively. 

Amid positive global market, domestic institutional investors (DIIs), neutral future and option (F&O), negative foreign institutional investors (FII) and cautious sentiments, the short-term trend of the Indian market is set to be neutral on Tuesday, October 31, 2018.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 31:

10,250 and 25,000 are going to be the deciding levels on Nifty and BankNifty. 

The small and bigger trading range on Nifty stands at 10,175-10,275 and 10,125-10,300 respectively. The extreme range resides at 10,075-10,350. 

In the case of BankNifty, the small and bigger trading range lies between the mark of 24,800-25,075 and 24,700-25,125 respectively. The extreme range resides at 24,500-25,300.  

Traders are advised to close their buying positions if Nifty and BankNifty closes below the mark of 10,125 and 24,400 respectively. However, they can increase their positions if the two indices close above the mark of 10,250 and 25,075. 
 
Sell and Buy strategy on Nifty 

Buy Nifty with a stop loss of 10,175 and target of 10,275-10,300-10,350.  

Sell Nifty in 10300-10350 range with a stop loss of 10,400 and target of 10,275-10,225. 

Buy and Sell Strategy on BankNifty 

Buy BankNifty with a stop loss of 24,700 and target of 25,000-25,075-25,125. 

Sell BankNifty in 25,125-25,250 range with a stop loss of 25,350 and target 25,000-24,925-24,850. 
 
Already In F&O ban: Adani Power
 
Put-call ratio (PCR) stands at 1.49 and the volatility index (VIX) is 20.50.  

Sectors:

Positive: Banks, NBFC

Negative: Pharma
 
Result Analysis:

Buy Cummins Futures: Stop loss 670 and target 700, 715, 735. Strong operational performance. 

Buy Bank of Baroda Futures: Stop loss 110 and target 115. Good NPA recovery, stable asset quality. Exit and book profit after the gap up opening. 

Stock of the Day:

Sell Dr Reddys Futures: Stop loss 2625 and target 2500, 2450. USFDA observations are a big negative. 

Sell Tata Steel Futures: Stop loss 570 and target 550, 542. Tata Steel Thyssenkrupp deal is under investigation.