Anil Singhvi’s Market Strategy August 7: Market positive; Adani Power is stock of the day

Domestic stocks on Monday, i.e. on August 6, 2018, surged to new record highs amid mixed global markets. BSE Sensex climbed 0.36 per cent or 135.73 points to 37,692.89. Nifty at National Stock Exchange also jumped up 0.23 per cent or 26.30 points to 11,387.10. 

Underperforming the Sensex, BSE Mid Cap added 0.26 per cent while Small Cap marginally outperformed the index as it gained 0.39 per cent. 

Positive sentiments, global outlook, neutral foreign institutional investors (FII), future and options (F&O) and domestic institutional investors (DIIs) cues,  suggests that the Indian market will continue its impressive bull run and remain positive on August 7, 2018. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for August 7:
11,400 and 27,900 are the deciding levels on Nifty and BankNifty. 

The small trading range on Nifty stands between 11,350 -11,425, while the bigger range lies at 11,300-11,475.

The small trading range on BankNifty lies between 27,700-28,000 and the bigger range is at 27,600-28,150. 

Important support zone on Nifty and BankNifty lies at 11,300 -11,325 and 27,600--27,700 respectively. 

Traders are suggested to lower their buying positions if Nifty and BankNifty closes below the mark of 11,350 and 27,600. However, they should end their positions if Nifty and BankNifty close below the mark of 11,250 and 27,500.

Put Call Ratio (PCR) is at 1.70 and thus traders are advised to be on an alert. 

Buy and Sell strategy on Nifty 
Buy Nifty in 11325-11350 range with a stop loss of 11,300 and a target of 11400-11425.
Sell Nifty in 11425-11450 range with a stop loss of 11,500 and a target of 11,400-11,375.

Buy and Sell strategy on BankNifty 
Buy BankNifty near 27700-27750 range with a stop loss of 27,600 and a target of 27,900-27,950. 
Sell BankNifty near 28000 with a stop loss of 28,150 and a target of 27,900-27,800. 

The put-call ratio (PCR) for August 7 stands at 1.70 and the volatility index (VIX) is 12.56.  

Enter or out of F&O Ban: Nil
Already in Ban: Adani Power, Jet Airways

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Results Impact:
Adani Port: Slight miss on Net profit front due to forex losses, Profit booking likely.
Ujjivan: Mix results, Profit booking at higher levels around 408-410.
Syndicate Bank: Weak results.

Stock of the Day: Sell Adani Power with a target of 30, 28 and a stop loss of 34. Weak operational performance, Mounting losses to hurt Balance Sheet.