Anil Singhvi’s Strategy April 7: Pharma, Metal & Banking sectors are Positive; Next Support Zone on Nifty is 7,850-8,050

Amid neutral global markets, domestic institutional investors (DIIs), futures & options (F&O) negative foreign institutional investors (FIIs), and cautious sentiment cues, the short-term trend of the Indian stock markets will be negative on Tuesday, April 7, 2020.

Domestic shares ended with steep losses on Friday, April 3, 2020, as coronavirus cases showed no signs of abating while negative global cues further impacted sentiments. The barometer index S&P BSE Sensex, slipped 674.36 points or 2.39% at 27,590.95. The Nifty 50 index shed 170 points or 2.06% at 8,083.80. Bank Nifty lost 959.05 points or 5.27%and closed at 17,249.30.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for April 7:

Editors Take:

Wait and watch the global recovery for the next two days.

Expectations of improvement in situation Vs reality need to be closely monitored.

Next Support Zone on Nifty is 7,850-8,050 and Bank Nifty is 16,900-17,250.

Strong Sell Zone on Nifty is 8,250-8,350, 8,500-8,650 and Bank Nifty is 18,000-18,200, 18,500-18,750.

The small day range for trading on Nifty is 8,050-8,350 while the medium and bigger ranges are 8,000-8,500 and 7,850-8,650 respectively.

The small day range for trading on Bank Nifty is 17,250-18,000, while the medium and bigger ranges are 17,100-18,500 and 17,100-18,800 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 8,050.

Bank Nifty intraday and closing stop loss 17,100.

For Existing Short Positions:

Nifty intraday and closing stop loss 8,350.

Bank Nifty intraday and closing stop loss 18,200.

Trigger stop loss and exit at the gap up open from 3rd April short position: Nifty 7,800 Put (given at 115) and Bank Nifty 17,000 put (given at 475).

For New Positions:

Buy Nifty with a stop loss of 8000 and target 8,350, 8,500, 8,650.

Sell Nifty in 8575-8675 range with a stop loss of 8,750 and target 8,500, 8,375, 8,250, 8,200.

Buy Bank Nifty with a stop loss of 17,100 and target 18,000, 18,200, 18,350, 18,500.

Sell Bank Nifty in 18,500-18,750 range with a stop loss of 19,000 and target 18,350, 18,200, 18,050, 17,850.

Put-Call Ratio (PCR) High 1.18, Volatility Index (VIX) down 4.75% to 55.30.

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Sectors:
Positive: Pharma, Metals and Banks