Anil Singhvi’s Strategy July 29: Private Banks are Positive; Auto & NBFC are Negative

Amid positive domestic institutional investors (DIIs), neutral global markets and futures and options (F&O) and negative foreign institutional investors (FIIs) cues, the short-term trend of the domestic Indian markets will be Negative on Monday, July 29, 2019, while sentiment is cautious. 

Earlier on Friday, July 26, 2019, the equity market ended with small gains after snapping a six-day losing streak. The recovery was backed by firmness in bank, auto and metal stocks. Sensex at Bombay Stock Exchange climbed 51.81 points (0.14%) to settle at 37,882.79. Nifty at National Stock Exchange also added 32.15 points (0.29%) to end at 11,284.30. Similarly, Bank Nifty gained 282.25 points (0.97%) to settle at 29,325.30. Yes Bank (up 9.07%), Bajaj Finance (up 7.40%), Bajaj Finserv (up 7.33%) and Eicher Motor (up 4.19%) were the top gainers of the day. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for July 29:

The small and medium day range for trading on Nifty lies between the mark of 11,225-11,350 and 11,200-11,400 respectively. 

The small and medium day range for trading on Bank Nifty lies between the mark of 29,200-29,375 and 29,075-29,500 respectively, while the bigger range stands at 28,900-29,650. 

For Existing Long Positions:

Nifty intraday stop loss 11,200 and closing stop loss 11,250. 

Bank Nifty intraday stop loss 29,200 and closing stop loss 28,950.

For Existing Short Positions:

Nifty intraday and closing stop loss 11,375.  

Bank Nifty intraday and closing stop loss 29,500. 

For New Positions:

Buy Nifty in 11,225-11,250 range with a stop loss of 11,200 and target 11,300, 11,325. 

Sell Nifty near 11,350 with a stop loss of 11,400 and target 11,300, 11,275. 

Buy Bank Nifty in 28,950-29,075 range with a stop loss of 28,850 and target 29,200, 29,325. 

Sell Bank Nifty in 29,500-29,600 range with a stop loss of 29,775 and target 29,375, 29,200. 

The put-call ratio (PCR) stands at 1.37 and the volatility index (VIX) is 12.13.

Sectors:

Positive: Private Banks.

Negative: Auto, NBFC.

Result Analysis:

ICICI Bank Futures: Range 410 to 425-430. Good results with improved asset quality. 

Havells Futures: Very poor performance, already given short from 785 levels. Lower levels 680, 675, 665. Keep SL of 705 for short positions. 

Vedanta Futures: Results inline. Debt reduction of Rs6750 crore is positive. Support at 160, higher range 170-175. 

Stock of the Day:

Sell Indiabulls Housing Futures: Stop loss 630 and target 610, 595. After a big gap down stock may recover, be alert on lower levels. 

Aaj ka Hero:

Sell Hero Moto Futures: Stop loss 2490 and target 2440, 2410, 2400. Vehicle registration policy draft big negative for the auto sector. No relief in GST over the weekend.