Anil Singhvi’s Strategy August 6: Metals, Auto, Banks & NBFC are Negative; Sell Hindalco Futures with Stop Loss 178

Amid positive domestic institutional investors (DIIs), negative global markets, foreign institutional investors (FIIs), futures and options (F&O) and negative sentiment cues, the short-term trend of the domestic Indian markets will be Negative today on Tuesday, August 6, 2019.

Indian equity markets tumbled more than 1% on Monday, August 5, 2019, after recovery in the previous trading session. Sensex, at Bombay Stock Exchange, declined 418.38 points or 1.13% to end at 36,699.84. Nifty at National Stock Exchange also fell 134.75 points or 1.23% to settle at 10,862.60. Bank Nifty tanked 556.90 points or 1.97% to end at 27,648.05.Yes Bank (down 8.21%), UPL (down 5.86%) and Tata Motors (down 5.13%) were the major losers of the day.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for August 6: 

10,800 and 27,500 are deciding levels on Nifty and Bank Nifty today.

The small day range for trading on Nifty stands at 10,775-10,850 while the medium and bigger ranges lie between 10,750-10,900
and 10,725-11,000.

The small and medium day range for trading on Bank Nifty lies between 27,400-27,650 and 27,050-27,850 respectively. 

For Existing Long Positions:
Nifty intraday stop loss 10,775 and closing 10,850.

Bank Nifty intraday stop loss 27,350 and closing stop loss 27,650.

For Existing Short Positions:
Nifty intraday stop loss 10,900 and closing stop loss 11,000.

Bank Nifty intraday stop loss 27,650 and closing stop loss 28,000.

For New Positions:
Sell Nifty with a stop loss of 10,900 and target 10,800, 10,750, 10,725.

Sell Bank Nifty with a stop loss of 27,850 and target 27,500, 27,400, 27,050.

The put-call ratio (PCR) stands at 1.02 and the volatility index (VIX) up 9% at 16.58.

Sectors:
Negative: Metals, Auto, Banks, NBFC

Stock of the Day:
Sell Hindalco Futures: Stop loss 178 and target 172, 170. Metal stocks to fall due to global weakness.

Aaj Ka Hero: 
Sell Tata Steel Futures: Stop loss 408 and target 390, 385. Metal stocks to fall due to global weakness.