Anil Singhvi’s Strategy August 4: Day support zone on Nifty is 10,700-10,800 & Bank Nifty is 20,550-20,650

Anil Singhvi’s Strategy August 4: Amid positive global markets, futures & options (F&O), negative foreign institutional investors (FIIs), neutral domestic institutional investors (DIIs) and cautious sentiment cues, the short-term trend of the Indian stock markets will be neutral on Tuesday, August 4, 2020.

At the stock markets, both the Sensex and the Nifty fell for the fourth straight day on Monday, August 3, 2020. Weak domestic economic data weighed on the sentiment. A surge in fresh coronavirus cases and intensifying US-China tensions also put pressure on stocks. 

The Sensex at the Bombay Stock Exchange plummeted 667 points, or 1.77 per cent, to close at 36,940. The Nifty slumped 182 points, or 1.57 per cent, to end at 10,892. The Nifty declined 3.55% in four sessions.

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Similarly, Bank Nifty lost 568 points, or 2.33 per cent, and settled at 21,072. 

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for August 4: 

Day support zone on Nifty is 10,700-10,800 and the day higher range is 11,000-11,075.

Day support zone on Bank Nifty is 20,550-20,650 and the day higher range is 21,400-21,650.

The small day range on Nifty is 10,850-10,950, while the medium and bigger day ranges are 10,800-11,000 and 10,725-11,075, respectively.

The small day range on Bank Nifty is 20,900-21,350, while the medium and bigger day ranges are 20,650-21,500 and 20,550-21,650, respectively.

Put-Call Ratio (PCR) is 1.10, near oversold, small short-covering expected, India Volatility Index (VIX) 4% up at 25.19.

For Existing Long Positions:

Nifty intraday and closing stop loss are 10,850.

Bank Nifty intraday and closing stop loss are 20,900.

For Existing Short Positions:

Nifty intraday stop loss is 11,000 and closing stop loss is 11,075.

Bank Nifty intraday stop loss is 21,400 and closing stop loss is 21,650.

For New Positions:

Sell Nifty in 11,000-11,075 range with a stop loss of 11,150 and target 10,950, 10,900, 10,850.

Buy Nifty in 10,700-10,800 range with a stop loss of 10,650 and target 10,850, 10,900, 10,950. 

Sell Bank Nifty in 21,350-21,500 range with a stop loss of 21,650 and target 21,250, 21,050, 20,900. 

Buy Bank Nifty in 20,550-20,650 range with a stop loss of 20,450 and target 20,900, 21,000, 21,050.  

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