Anil Singhvi’s Strategy April 20: Strong Sell Zone on Nifty is 9,500-9,600; Sell Indigo Futures with Stop Loss 1090

Amid positive domestic institutional investors (DIIs), neutral global markets, futures & options (F&O) and sentiments and negative foreign institutional investors (FIIs) cues, the short-term trend of the Indian stock markets will be neutral on Monday, April 20, 2020.

Domestic shares surged on Friday, April 17, 2020, tracking strong global cues following reports that a drug developed by Gilead Sciences was showing effectiveness in treating the coronavirus. The sentiment was also boosted by US President Donald Trump's plans to gradually reopen the US economy.

The barometer index, the S&P BSE Sensex, surged 986.11 points or 3.22% at 31,588.72. The Nifty 50 index climbed 273.95 points or 3.05% at 9,266.75. Nifty Bank rose 1,281.45 points or 6.92% to close at 20,681.45.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for April 20:

Strong Support Zone on Nifty is 8,900-9,000 and Bank Nifty is 19,500-19,900.

Strong Sell Zone on Nifty is 9,500-9,600 and Bank Nifty is 21,000-21,500.

The small day range for trading on Nifty is 9,125-9,325, while the medium and bigger ranges are 9,000-9,400 and 8,925-9,500 respectively.

The small day range for trading on Bank Nifty is 20,500-20,850, while the medium and bigger ranges are 20,200-21,000 and 19,900-21,400 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 9,100.

Bank Nifty intraday and closing stop loss 20,150.

For Existing Short Positions:

Nifty intraday and closing stop loss 9,325.

Bank Nifty intraday and closing stop loss 20,900.

For New Positions:

Buy Nifty in 9,000-9,150 range with a stop loss of 8,900 and target 9,250, 9,325, 9,400, 9,500.

Sell Nifty in 9,400-9,500 range with a stop loss of 9,600 and target 9,325, 9,275.

Buy Bank Nifty in 20,150-20,300 range with a stop loss of 19,900 and target 20,500, 20,650, 20,850, 21,000.

Sell Bank Nifty in 20,900-21,050 range with a stop loss of 21,500 and target 20,700, 20,500, 20,300.

Put-Call Ratio (PCR) is 1.38 and the Volatility Index (VIX) down by 8% to 42.55.

See Zee Business Live TV Streaming Below:

Stock of the Day
Sell Indigo Futures: Stop loss 1090 and Target 1020-1000. Booking Stops till May 31, 2020.