Anil Singhvi’s Strategy January 31: Banking Sector is Positive; Buy Kotak Mahindra Bank Cash with Stop Loss 1618

Amid positive global market, neutral domestic institutional investors (DIIs), futures & options (F&O) and negative foreign institutional investors (FIIs) cues, the short-term trend of the Indian stock markets will be Neutral on Thursday, January 30, 2020, while sentiment is cautious.

The stock markets closed in a negative zone on Thursday, January 30, 2020. The Sensex at the Bombay Stock Exchange tumbled 284.84 points, or 0.69 per cent, to end at 40,913.82 today. The Nifty 50 at the National Stock exchange fell 93.70 points, 0.77 per cent, to 12,035.80. Similarly, Bank Nifty was down by 229.60 points, or 0.74 per cent, to 30,647.40. In the broader market, the BSE Midcap index slumped 1.26 per cent and the Smallcap index lost 0.92 per cent.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 31:

The small day range for trading on Nifty is 12,025-12,100, the medium and bigger range are 12,000-12,125 and 11,950-12,175 respectively.

The small day range for trading on Bank Nifty is 30,600-30,750, the medium and bigger range are 30,500-30,850 and 30,300-31,050 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 12,000.

Bank Nifty intraday and closing stop loss 30,500.

For Existing Short Positions:

Nifty intraday and closing stop loss 12,125.

Bank Nifty intraday and closing stop loss 30,900.

For New Positions:

Buy Nifty with a stop loss of 12,000 and target 12,100, 12,125, 12,150, 12,175.

Sell Nifty in 12,125-12,175 range with a stop loss of 12,200 and target 12,100, 12,050, 12,025.

Buy Bank Nifty with a stop loss of 30,500 and target 30,750, 30,850, 30,900, 31,000.

Sell Bank Nifty in 30,900-31,050 range with a stop loss of 31,100 and target 30,850, 30,750, 30,650, 30,550.

Put-Call Ratio (PCR) lower at 1.25, the volatility index (VIX) up 16.80.

No stock in F&O Ban

Sectors:

Positive: Banks

Stock of the Day:

Buy Kotak Mahindra Bank Cash: Stop loss 1618 and target 1660, 1675. Stake reduction issue is settled between RBI and promoters.