Anil Singhvi’s Strategy July 2: Market Trend is Positive; Buy Sadbhav Infrastructure with Stop Loss 70

Amid positive global outlook, foreign institutional investors (FII) and sentiment and neutral Futures and Options (F&O) and Domestic Institutional Investors (DIIs) cues, the short-term trend of the Indian market will remain positive on Tuesday, July 2, 2019. With US-China trade tensions easing, the markets earlier on Monday, July 1, 2019, closed on a strongly positive note. 

Nifty ended the day higher by 76.75 points at 11,865.60 while Sensex gained over 291.86 points to settle at 39,686.50. Similarly, Bank Nifty gained 267 points to settle at 31,372.20. Zee Entertainment was the top gainer of the day – up by 8.37% followed by Dr Reddy’s which gained 4.06%.  

Zee Business's Managing Editor Anil Singhvi's Market Strategy for July 2: 

Nifty stuck in 300 points intraday trading range of 11,625-11,925. 
A sustained close above 11,850 required to confirm breakout on the upper side.
11,850 and 31,300 are the deciding levels on Nifty and Bank Nifty respectively.
The small and medium day range for trading on Nifty lies between 11,825-11,900 and 11,775-11,925 respectively. The bigger range stands at 11,750-11,975.
The small and medium day range for trading on Bank Nifty lies between 31,250-31,450 and 31,150-31,500 respectively. The bigger range stands at 31,050-31,650.

For Existing Long Positions:

Nifty intraday and closing stop loss 11,775. 
Bank Nifty intraday stop loss 31,200 and closing basis stop loss 31,100.
 
For Existing Short Positions:

Nifty intraday stop loss 11,925 and closing stop loss at 11,850 triggered.
Bank Nifty intraday and closing stop loss at 31,300 triggered. 

For New Positions:

Buy Nifty with a stop loss of 11,825 and target 11,900, 11,925, 11,975. 
Sell Nifty near 11,925 with a stop loss of 12,000 and target 11,875, 11,850. 
Buy Bank Nifty in 31,050-31,250 range with a stop loss of 31,050 and target 31,350, 31,450, 31,500.  
Sell Bank Nifty near 31,500 with a stop loss of 31,550 and target 31,400, 31,300. 

In F&O Ban: DHFL

The put-call ratio (PCR) stands at 1.37 and the volatility index (VIX) is 14.60.

Stock of the Day: 

Buy Sadbhav Infrastructure: Stop loss 70 and target 75, 78. Sadbhav sells 9 assets for Rs.2550 crore.