Anil Singhvi’s Strategy October 22: PSU Companies are Positive; IT & NBFC sectors are Negative

Amid positive domestic institutional investor (DII), neutral foreign institutional investors (FIIs) and futures & options (F&O), negative global markets and cautious sentiment cues, the short-term trend of Indian share market will be positive on Tuesday, October 22, 2019.

Earlier on Friday, October 18, 2019, the equity benchmarks closed on a positive note for the sixth session in a row. On the day, BSE Sensex surged 246.32 points or 0.63 per cent to end at 39,298.38. The NSE Nifty also ended, 75.50 points or 0.65 per cent, higher at 11,661.85. Bank Nifty gained 130.80 points or 0.45 per cent to settle at 29,120.25. Indian stock exchanges were closed on Monday due to state elections.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 22:

Day support zone on Nifty is 11,550-11,575 and Bank Nifty is 28,550-28,750.

Higher zone on Nifty 11,675-11,700 and on Bank Nifty 29,250-29,500.

Small day range for trading on Nifty stands at 11,600-11,675 while the medium and bigger ranges lie between 11,550-11,700 and 11,475-11,750.

Small day range for trading on Bank Nifty stands at 29,000-29,250 while the medium and bigger ranges lie between 28,750-29,400 and 28,550-29,500.

Fresh buy position only if Nifty and Bank Nifty sustain above 11,700, 29,500. 

For Existing Long Positions:

Nifty intraday and closing stop loss 11,550.

Bank Nifty intraday stop loss 29,000 and closing stop loss 28,500. 

For Existing Short Positions:

Nifty intraday and closing stop loss 11,700.

Bank Nifty intraday and closing stop loss 29,250. 

For New Positions:

Sell Nifty with a stop loss of 11,700 and target 11,600, 11,550, 11,500.

Buy Nifty in 11,475-11,500 range with a stop loss of 11,425 and target 11,550, 11,600, 11,650.

Sell Bank Nifty with a stop loss of 29,300 and target 28,900, 28,750, 28,550.

Buy Bank Nifty in 28,550-28,750 range with a stop loss of 28,450 and target 28,900, 29,100, 29,200. 

The put-call ratio (PCR) is 1.44 and the volatility index (VIX) is 15.93.

Sectors:

Positive: PSU

Negative: IT, NBFC

Result Analysis:

Sell Ambuja Cement Futures: Stop loss 209 and target 202, 197, 192. Weak operational performance, Volume and margins miss.

Sell L&T Finance Futures: Stop loss 86 and target 83, 81. Slow loan growth, weak asset quality.

Sell LIC Housing Futures: Stop loss 390 and target 375, 370. Slow loan growth, weak asset quality. 

Stock of the Day:

Sell Tata Motors Futures: Stop loss 138 and target 133, 131. BREXIT deal concerns, USA Vs UK Duty war on cars.