Anil Singhvi’s Market Strategy October 23: Market is Neutral; PSU Banks, NBFCs to be in focus

After trading in a narrow range for the most part of the day, the domestic markets crashed and closed in the red on Monday, October 22, 2018. BSE Sensex fell by 181.25 points or 0.53 per cent to close at 34.134.38. NSE's Nifty 50 dropped 58.30 points or 0.57 per cent to close at 10,245.25 while Nifty Bank lost 7.20 points or 0.03 per cent to close at 25,078.60. 

Amid positive domestic institutional investors (DIIs), neutral future and option (F&O) and foreign institutional investors (FII), weak sentiment and negative global market cues, the short-term trend of the Indian market is set to be neutral on Tuesday, October 23, 2018. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 23: 

Markets to remain volatile, trade contra against the trend for small gains with strict stop loss. 
PCR 1.10 near oversold, VIX higher at 21.36. 

#ZBizView | आज की F&O रणनीति जानिए @AnilSinghviZEE से।@deepaliranaa pic.twitter.com/zruM7z9Qeq

— Zee Business (@ZeeBusiness) October 23, 2018

10,300 and 25,000 are going to be the deciding levels on Nifty and BankNifty. 

Small, bigger and extreme trading range on Nifty lies at 10,200-10,300, 10,135-10,350 and  10,050-10,400.

In the case of BankNifty, the small trading range stands at 24,900-25,200 and the bigger and extreme range lies between 24,750-25,350 and 24,500-25,500 respectively. 

Traders are advised to reduce their buying positions if the two indices, Nifty and BankNifty, closes below the mark of 10,300 and 25,000. 

Sell and Buy Strategy on Nifty 

Sell Nifty with a stop loss of 10,300 and target of 10,200-10,175-10,150. 

Buy Nifty near 10,150 with a stop loss of 10,100 and target 10,200-10,250. 

Sell and Buy Strategy on BankNifty 

Sell BankNifty with a stop loss of 25,200 and target 24,900-24,800-24,700. 

Buy BankNifty in 24700-24800 range with a stop loss of 24,500 and target 24,900-25,000. 

Enters F&O Ban: Adani Enterprises

Out of Ban: DHFL

Already in Ban: Adani Power, Jet Airways

Put-call ratio (PCR) stands at 1.10 and the volatility index (VIX) is 21.36

Sectors in focus: PSU Banks, NBFC
 
Result Analysis:

Sell Asian Paints Futures: Lower domestic volume growth and weak margins to put pressure. Stop loss 1210 and target 1175-1165. 

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Stock of the Day:

Buy Adani Ports Future: Stop loss 314 and target 328, 333. Strong results expected but keep strict Stop loss. 

Sell Berger Paints Futures: Stop loss 285 and target 270.