Anil Singhvi’s Strategy December 27: Market Trend is Neutral today; Buy Cadila Healthcare Cash with Stop Loss 254

Amid neutral global markets, domestic institutional investors (DIIs) and futures and options (F&O) and negative foreign institutional investors (FII) cues, the short-term trend of the Indian stock markets will be neutral on Friday, December 27, 2019, while the sentiment is cautious.

Equity benchmarks on Thursday, December 26, 2019, closed with losses for the third session in a row. Trading was volatile as December F&O contracts expired on the day. Sensex and Nifty, both, lost around 0.7 per cent amid mixed cues from global markets. Sensex at Bombay stock exchange fell 297.50 points, or 0.72%, to close at 41,163.76. Nifty at National Stock Exchange also slipped 88 points, or 0.72%, to settle at 12, 126.55. Bank Nifty dropped 283.05 points, or 0.88%, to settle at 31,997.70.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for December 27:

Higher crude, weaker Rupee and FIIs selling to put pressure at higher levels.

Strong global markets, year-end buying and less selling pressure after expiry to give support at lower levels.

The correction will be over if Nifty and Bank Nifty close above 12,225 and 32,250.

Strong day support zone on Nifty is 12,050-12,075 and Bank Nifty is 31,700-31,800.

The small day range for trading on Nifty is 12,100-12,165, while the medium and bigger day ranges lies between 12,075-12,200 and 12,050-12,250.

The small day range for trading on Bank Nifty is 32,000-32,200, while the medium and bigger day ranges lies between 31,900-32,250 and 31,750-32,325.

For Existing Long Positions:

Nifty intraday and closing stop loss 12,100.

Bank Nifty intraday and closing stop loss 31,900.

For Existing Short Positions:

Nifty intraday and closing stop loss 12,225.

Bank Nifty intraday and closing stop loss 32,250.

For New Positions:

Buy Nifty with a stop loss of 12,100 and target 12,165, 12,200, 12,225.

Sell Nifty near 12,200-12,250 range with a stop loss of 12,300 and target 12,165, 12,135.

Buy Bank Nifty with a stop loss of 31,900 and target 32,125, 32,200, 32,250.

Sell Bank Nifty in 32,250-32,350 range with a stop loss of 32,400 and target 32,200, 32,150.

No Stock in F&O Ban today

Out of Ban: Dish TV

Put-Call Ratio (PCR) 1.31, the volatility index (VIX) very low at 11.12. Volatility may increase.

Stock of the Day:

Buy Cadila Healthcare Cash: Stop loss 254 and target 263, 266. Plans to sell 2 units for Rs.1200 crore.