Amid positive global markets, foreign institutional investors (FIIs), sentiment, neutral futures & options (F&O) and negative domestic institutional investors (DIIs) cues, the short-term trend of the Indian stock markets will be positive on Thursday, December 31, 2020. 

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Domestic equity benchmarks ended with decent gains after a volatile session on Wednesday, December 30, 2020. The S&P BSE Sensex ended 133.14 points or 0.28 per cent higher at 47,746.22. The Nifty 50 index gained 49.35 points or 0.35 per cent, to close near 14,000-mark at 13,981.95. However, Bank Nifty lost 19.45 points or 0.06 per cent and closed at 31,303.05. 

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Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for December 31: 

Today’s strategy

Buy near strong support levels

Big short-covering, if Nifty sustains above 14,000

Strong FIIs buying will support

Profit booking expected at higher levels

Day support range on Nifty is 13,850-13,875, below that 13,750-13,800 is strong Buy zone.

Day higher range on Nifty is 14,025-14,075, closing above 14,000 will trigger big short covering. 

Day support range on Bank Nifty is 30,900-31,050, below that 30,750-30,850 is strong Buy zone. 

Day higher range on Bank Nifty is 31,500-31,575, above that 31,750-31,850 is profit-booking range. 

Small Day Range for trading on Nifty is 13,900-14,000, while the medium and bigger ranges are 13,875-14,050 and 13,850-14,075, respectively.

Small Day Range for trading on Bank Nifty is 31,000-31,500, while the medium and bigger ranges are 30,900-31,575 and 30,750-31,750, respectively. 

FIIs decreased Index long to 63% Vs 67%.

PCR at 1.56 Vs 1.55, VIX up by 2% at 21.11.

For Existing Long Positions:

Nifty intraday and closing stop loss are 13,850.

Bank Nifty intraday and closing stop loss are 31,000.

For Existing Short Positions:

Nifty intraday and closing stop loss are 14,050.

Bank Nifty intraday and closing stop loss are 31,500.

For New Positions:

Buy Nifty with a stop loss of 13,850 and target 14,000, 14,025, 14,075, 14,100. 

Aggressive traders Sell Nifty in 14,050-14,100 range with a stop loss of 14,150 and target 14,000, 13,975, 13,935.

For New Positions:

Buy Bank Nifty with a stop loss of 31,000 and target 31,400, 31,500, 31,575, 31,750, 31,825.

Sell Bank Nifty in 31,750-31,850 range with a stop loss of 31,900 and target 31,600, 31,525, 31,425, 31,350.

Sectors:

Positive: Cement, PSU, Midcaps

F&O Ban Update: 

New in Ban: Canara Bank

Already in Ban: PNB

Out of Ban: SAIL

Stock of the Day:

Buy Birla Corp: Stop loss 710 and target 750, 770, 800. Attractive valuations, trading at half of the replacement cost. Set to benefit from capacity expansion.