Anil Singhvi’s Strategy February 6: Buy Metals, Banks, PSU & OMC on dips; Sell DLF Futures with Stop Loss 255

Amid positive global markets, foreign institutional investors (FIIs), domestic institutional investors (DIIs) & sentiments and neutral futures & options (F&O) cues, the short-term trend of the Indian stock markets will be neutral today, on Thursday, February 6, 2020.

After a shaky start on Wednesday, February 5, 2020, the equity benchmarks turned volatile and hit the day's low by noon. The indices, however, bounced back and ended near the high point of the day. The Nifty managed to end above the 12,000 level. The Sensex at the Bombay Stock Exchange jumped 353.28 points, or 0.87 per cent, to end at 41,142.66. The Nifty at the National Stock exchange advanced 109.50 points, or 0.94 per cent, to 12,089.15. Bank Nifty was up by 315.25 points, or 1.10 per cent, and settled at 31,001.95. 

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

Strong Day Support Zone on Nifty is 11,950-12,000 and Bank Nifty is 30,650-30,850. 

The small day range for trading on Nifty is 12,050-12,160, while the medium and bigger ranges are 12,000-12,200 and 11,950-12,250 respectively. 

The small day range for trading on Bank Nifty 30,850-31,200, while the medium and bigger ranges are 30,750-31,350 and 30,650-31,450 respectively. 

For Existing Long Positions:

Nifty intraday and closing stop loss 12,000

Bank Nifty intraday and closing stop loss 30,800.

For Existing Short Positions:

Nifty intraday and closing stop loss 12,200

Bank Nifty intraday and closing stop loss 31,100.

For New Positions:

Buy Nifty in near 12,000-12,050 range with a stop loss of 11,950 and target 12,100, 12,150, 12,200. 

Sell Nifty in 12,200-12,250 range with a stop loss of 12,300 and target 12,170, 12,125, 12,100. 

Buy Bank Nifty in 30,750-30,850 range with a stop loss of 30,650 and target 30,950, 31,050, 31,200, 31,350, 31,450. 

Sell Bank Nifty in 31,350-31,450 range with a stop loss of 31,550 and target 31,250, 31,150, 31,050. 

Put-Call Ratio (PCR) is 1.39 and the volatility index (VIX) is 14.17.

Yes Bank enters in F&O Ban.

Sectors:
Positive: Metals, Banks, PSU and OMC buy on dips.

Result Review:
Sell HPCL Futures: Weak results, recovery in crude to put pressure on higher levels. CLSA puts sell target 210. But buying expected at lower levels due to dividend. Futures support range 225-228, higher range 244-247. 

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Stock of the Day:

Sell DLF Futures: Stop loss 255 and target 245, 240. Results operationally weak, sales n margins below estimates.