Anil Singhvi’s Market Strategy January 7: Market to be Neutral; PSU & Private Banks, NBFC, Metals are Positive

The domestic stock markets, Sensex and Nifty, closed in the green on Friday, January 4, 2018. On the day, Sensex rebounded 181.39 points to close at 35,695.10 while the NSE Nifty 50 reclaimed the 10,727.35 mark by gaining 55.10 points. Similarly, Nifty Bank was up by 235.15 points to end at 27,195.00. 

The gains were backed by a recovery in auto, metal and banking stocks amid buying by domestic institutional investors. 

Positive global market and sentiment, neutral future and option (F&O), foreign institutional investors (FII) and domestic institutional investors (DIIs) cues suggest that the short-term trend of the Indian market will be neutral on Monday, January 7, 2019. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 7:

The small and medium trading range on Nifty lies between 10,750-10,800 and 10,725-10,850 while the extreme range stands at 10,675-10,925. 

In the case of the Bank Nifty, the small and medium ranges lie between 27,050-27,350 and 27,000-27,450. The extreme range stands at 26,900-27,650. 

Traders are advised to reduce their positions in case, where the two indices, Nifty and Bank Nifty, close below the mark of 19,675 and 27,690. 

Buy and Sell strategy on Nifty

Buy Nifty with a stop loss of 10,725 and target of 10,800, 10,850, 10,900.  

Sell Nifty in 10,875-10,900 range with a stop loss of 10,925 and target of 10,850,10,825. 

Buy strategy on Bank Nifty

Buy Bank Nifty with a stop loss of 27,050 and target of 27,400, 27,500, 27,650. 

The put-call ratio (PCR) stands at 1.34 and the volatility index (VIX) is 16.16.

2 Already in F&O Ban: Adani Power, Jet Airways.

Watch this Zee Business tweet video:

ग्लोबल बाज़ारों से तो संकेत अच्छे हैं लेकिन शनिवार को मुंबई की स्पेशल कोर्ट द्वारा #VijayMallya को भगोड़ा साबित के बाद आज बाज़ार पर क्या असर होगा जानते हैं अनिल सिंघवी से #EditorsTake में।@AnilSinghviZEE @dkalra81 pic.twitter.com/aGLLYzqAVE

— Zee Business (@ZeeBusiness) January 7, 2019

Sectors in focus:

Positive: PSU & Private Banks, NBFC, Metals.

Stock of the Day:

Buy PNB Futures: Stop loss 80 and target 84. Mallya Impact positive for PSU Banks. 

Buy Hindalco Futures: Stop loss 209 and target 215, 217. Short covering expected in metal stocks. 

Buy Titan Futures: Stop loss 935 and target of 950, 965. Strong guidance for next quarter.