Anil Singhvi’s Strategy July 23: Market Trend & Sentiment are Negative; Sell Kotak Mahindra Bank Futures with Stop Loss 1475

Amid positive domestic institutional investors (DIIs), neutral futures and options (F&O) and global markets, negative foreign institutional investors (FIIs) and sentiment cues, the short-term trend of the domestic Indian markets will be Negative on Tuesday, July 23, 2019.  Extending losses for the third session in a row, the benchmarks domestic indices, Sensex and Nifty, earlier on Monday, July 22, 2019, witnessed heavy selling on account of outflows by foreign portfolio investors (FPI) and weak start to June quarter earnings. Sensex at Bombay Stock Exchange declined 305.88 points or 0.80 per cent to close at 38,031.13.

Nifty at National Stock Exchange also fell 73.05 points or 0.64 per cent to end at 11,346.20. In the same way, Bank Nifty slipped 485.40 points or 1.63 per cent and closed at 29,284.95. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for July 23:
The small day range for trading on Nifty stands at 11,300-11,400 while the medium and bigger ranges lie between 11,250-11,425 and 11,200-11,500. 
The small day range for trading on Bank Nifty stands at 29,200-29,500 while the medium-range reside at 29,000-29,700. 

For Existing Long Positions:
Nifty intraday and closing stop loss 11,300.
Bank Nifty intraday and closing stop loss 29,200.

For Existing Short Positions:
Nifty intraday stop loss 11,425 and closing stop loss 11,500.
Bank Nifty intraday stop loss 29,500 and closing stop loss 29,700.

For New Positions:
Sell Nifty in 11,400-11,425 range with a stop loss of 11,450 and target 11,350, 11,300. 
Buy Nifty near 11,300 with a stop loss of 11,250 and target 11,350. 
Sell Bank Nifty in 29,500-29,700 range with a stop loss of 29,800 and target 29,300, 29,200
Buy Bank Nifty near 29,200 with a stop loss of 29,150 and target 29,500, 29,600. 
The put-call ratio (PCR) stands at 1.01 and the volatility index (VIX) is 13.01.

Enters F&O Ban: Dish TV
Out of F&O Ban: Reliance Capital
3 already in Ban: IDBI, Reliance Infrastructure, DHFL

Result Analysis:
Just Dial Futures: Results looking good only due to other income, operationally weak results. Adjusted PAT is down 8% QoQ. If opens gap up due to short covering, then it’s a perfect short around 730-735. Stop loss 740 and target 700, 680. 

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— Zee Business (@ZeeBusiness) July 23, 2019

Stock of the Day: Sell Kotak Mahindra Bank Futures: Loan growth at 9 quarter low, cautious outlook, weak asset quality, high PE at 40, price to book value 5 times. Stop loss 1475 and target 1420, 1400, 1380. 

Aaj ka Hero: United Spirits Futures: Strong results due Rs97 crore one-off sales of Scotch, adjusted revenue grew only 5%. Book Profit at gap up around 612-625 higher range and can be shorted at a higher level too. 575-585 lower range.