Anil Singhvi’s Market Strategy January 4: Market is Negative; Sell PSU Banks, Metals & Auto on rise

Domestic equity markets declined for the second day as benchmarks, Nifty and Sensex, closed with losses of around 1 per cent on Thursday, January 3, 2018. Weak global cues and heavy selling by foreign and domestic institutional investors led to the fall. 

The Nifty 50 declined 120.25 points, or 1.11 per cent to end at 10,672.25 while Nifty Bank was down by 214.85 points, 0.79 per cent and closed at 26,959.85. Similarly, S&P BSE Sensex tanked 377.81 points, or 1.05 per cent, to close at 35,513.71. 

Neutral global market, future and option (F&O), domestic institutional investors (DIIs), weak sentiment and negative foreign institutional investors (FII) cues suggest that the short-term trend of the Indian market will be negative on Thursday, January 4, 2019. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 4: 

10,700 and 27,000 are going to be deciding levels on Nifty and Bank Nifty. 

The small trading range on Nifty stands around 10,625-10,700 while the medium and extreme ranges lie between 10,600-10,750 and 10,550-10,800.

The small trading range on Bank Nifty stands around 26,900-27,150 while the medium and extreme ranges lie between 26,800-27,250 and 26,700-27,350. 

Short Positions should be closed only after the two indices, Nifty and Bank Nifty, closes above the mark of 10,850 and 27,175. 

Buy and Sell Strategy on Nifty 

Buy Nifty near 10,600 with a stop loss of 10,550 and target of 10,650, 10,675. 

Sell Nifty in 10,725-10,775 range with a stop loss of 10,800 and target of 10,675,10,650. 

Buy and Sell Strategy on Bank Nifty 

Buy Bank Nifty with a stop loss of 26,900 and target of 27,050, 27,150, 27,250. 

Sell Bank Nifty in 27,150-27,250 range with a stop loss of 27,400 and target of 27,000, 26,900. 

The put-call ratio (PCR) stands at 1.34 and the volatility index (VIX) is 16.79.

Watch this Zee Business tweet video:

#NewsImpact | पूजा त्रिपाठी से जानते हैं कि आज किन ख़बरों के चलते रिलायंस कम्युनिकेशंस और FMCG सेक्टर के शेयर रह सकते हैं एक्शन में।@AnilSinghviZEE @poojat_0211 @deepaliranaa #stockstowatch #stocksinnews #FridayDressingOnZee pic.twitter.com/GPX1ChH4ST

— Zee Business (@ZeeBusiness) January 4, 2019

Sectors in focus:

All sell on the rise: PSU Banks, Metals, Auto

Stock of the Day:

Sell Reliance Communication: Stop loss 13.75 and target 13, 12.75, 12.25. Ericsson moves to Supreme Court to demand Anil Ambani Arrest. 
Sell Reliance Infra Futures: Stop loss 295 and target 285, 280, 275.