Anil Singhvi’s Strategy July 3: Defence Sector is Positive; Buy HAL (Cash) with Stop Loss 760

Anil Singhvi’s Strategy July 3: Amid positive global markets, domestic institutional investors (DIIs), sentiment, neutral foreign institutional investors (FIIs) and cautious futures & options (F&O) cues, the short-term trend of the Indian stock markets will be positive on Friday, July 3, 2020. 

Benchmark stocks on Thursday, July 2, 2020, gained more than one per cent for the second day in a row amid positive global cues. Sensex at Bombay Stock Exchange climbed 429 points, or 1.21 per cent, to close at 35,844. Similarly, the Nifty at National Stock Exchange surged 122 points, or 1.17 per cent, to settle at 10,552. Broader indices at BSE also appreciated. Mid-cap jumped 1.04 per cent up while Small-cap added 0.92 per cent. However, Bank Nifty declined 24 points, or 0.11 per cent, to 21,953. 

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Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for July 3: 

Strong support zone on Nifty is 10,400-10,475 and the higher range is 10,600-10,750.

Strong support zone on Bank Nifty is 21,500-21,700 and the higher range is 22,250-22,475.

The small day range for trading on Nifty is 10,500-10,600, while the medium and bigger ranges are 10,475-10,650 and 10,425-10,700, respectively. 

The small day range for trading on Bank Nifty is 21,700-22,150, while the medium and bigger ranges are 21,600-22,325 and 21,500-22,450, respectively. 

 Put-Call Ratio (PCR) is 1.61, Alert at higher levels, India Volatility Index (VIX) down 6% at 26.51. 

For Existing Long Positions:

Nifty intraday stop loss 10,475 and closing stop loss 10,300.

Bank Nifty intraday and closing stop loss 21,700.

For Existing Short Positions:

Nifty intraday and closing stop loss 10,600

Bank Nifty intraday stop loss 22,350 and closing stop loss 22,000.

For New Positions:

Buy Nifty with a stop loss of 10,475 and target 10,600, 10,650, 10,700.

Sell Nifty in 10,650-10,700 range with a stop loss of 10,750 and target 10,600, 10,550.

Buy Bank Nifty with a stop loss of 21,700 and target 22,150, 22,250, 22,350, 22,450.

Sell Bank Nifty in 22,300-22,450 range with a stop loss of 22,550 and target 22,200, 22,050, 21,950.

Sectors in Focus:

Positive: Defence

Enters F&O Ban: SAIL

Already in Ban: Vodafone Idea, Glenmark

Stock of the Day:

Buy HAL (Cash): Stop loss 760 and target 790, 805. Government has issued Rs 38,900 crore defence order.

Vedanta: Buy in the range of 98-100.