Anil Singhvi’s Market Strategy January 3: Market to be Neutral; PSU Bank & Metals are Negative

The domestic stock markets, Sensex and Nifty, closed with losses of around one per cent on Wednesday, January 2, 2018. The fall came amid weak cues from other Asian markets, foreign fund outflow and fall in rupee. 

On the day, the S&P BSE Sensex ended 363.05 points, or 1 per cent, down at 35,891.52. The Nifty 50 also declined 117.60 points, or 1.08 per cent, and closed at 10,792.50 while Nifty Bank was closed at 27,174.70 after going down 217.70 points, or 0.79 per cent. 

Neutral global market, future and option (F&O), foreign institutional investors (FII), domestic institutional investors (DIIs) and cautious sentiments suggest that the short-term trend of the Indian market will be neutral on Thursday, January 3, 2019. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 3:

10,800 and 27,200 are going to be the deciding level on Nifty and Bank Nifty. 

The small and medium trading range on Nifty lies between 10,725-10,850 and 10,650-10,900 while the extreme range stands at 10,600-10,925

The small and medium trading range on Bank Nifty lies between 27,050-27,250 and 27,000-27,400 while the extreme range stands at 26,900-27,500. 

Traders are advised to reduce their positions if the two indices close below the mark of 10,775 and 27,100. 

The market may go bullish if the two indices will close above the mark of 10,925 and 27,400. 

Watch this Zee Business tweet video:

सरकार किसानों को और राहत देने की तैयारी में है, ये प्रलोभन किसानों के लिए कितना अच्छा और क्या बाज़ार के लिए खराब है, समझते हैं अनिल सिंघवी से #EditorsTake में।@AnilSinghviZEE @dkalra81 pic.twitter.com/t0PE2ZnUyH

— Zee Business (@ZeeBusiness) January 3, 2019

Buy and Sell strategy on Nifty 

Buy Nifty in 10700-10725 range with a stop loss of 10,650 and target of 10,775, 10,825. 

Sell Nifty in 10,850-10,875 range with a stop loss of 10,925 and target of 10,800,10,775. 

Buy and Sell strategy on Bank Nifty 

Buy Bank Nifty in 27,000-27,100 range with a stop loss of 26,900 and target of 27,250, 27,350. 

Sell Bank Nifty in 27,350-27,400 range with a stop loss of 27,500 and target of 27,250, 27,150. 

The put-call ratio (PCR) stands at 1.47 and the volatility index (VIX) is 16.39.
 
Sectors in focus:

Negative: PSU Banks, Metals sell on rise.

Stock of the Day:

Sell Dena Bank: Stop loss 18.25 and target 15, 14.50. Swap ratio is big 27% negative for Dena Bank. 

Vijaya Bank will also fall appx 5%