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.

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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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No stocks in F&O Ban

Sectors:
Positive: Pharma, Metals and Banks