Anil Singhvi’s Strategy October 12: Day support zone on Nifty is 11,800-11,850 & Bank Nifty is 22,450-23,600

Amid positive global markets, sentiment, neutral foreign institutional investors (FIIs), domestic institutional investors (DIIs) and futures & options (F&O) cues, the short-term trend of the Indian stock markets will be positive on Monday, October 12, 2020. 

Equity benchmarks on Friday, October 9, 2020, extended gains for the seventh session in a row amid mixed global cues. The Sensex reclaimed 40,500-mark while the Nifty regained 11,900. The sentiment got a boost after the Reserve bank of India left its key policy rates unchanged while retaining its accommodative stance. It also announced a slew of measures to ensure adequate liquidity in the banking system.

The BSE 30-share index, Sensex, gained 326.82 points, or 0.81 per cent, to settle at 30,509.49. The Nifty-50 index also jumped 79.60 points, or 0.67 per cent, to settle at 11,914.20. Similarly, Bank Nifty gained 655.45 points, or 2.83 per cent, to settle at 23,846.80.

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for October 12: 

Editor’s Take on Vedanta Delisting Offer Failed:

Stock can fall to 90-95 range in coming days. Let stocks settle next 2-3 days.

Stocks tendered in delisting offer expected to come back to investors today or tomorrow.

Investors who want to buy stocks in dividend expectation should focus on Hind Zinc first.

Day support zone on Nifty is 11,800-11,850, below that 11,725-11,775 is strong buy zone. 

Day higher range on Nifty is 11,975-12,000, above that 12,050-12,150 is profit booking zone.

Day support range is Bank Nifty is 23,450-23,600, below that 23,075-23,200 is strong buy zone.

Day higher range on Bank Nifty is 24,050-24,175, above that 24,450-24,600 is profit booking zone.

The small day range for trading on Nifty is 11,900-12,000, while the medium and bigger ranges are 11,850-12,050 and 11,800-12,100, respectively. 

The small day range for trading on Bank Nifty is 23,800-24,050, while the medium and bigger ranges are 23,600-24,175 and 23,450-24,450, respectively. 

FIIs Net Index long at 72% Vs 68% 

Put-Call Ratio (PCR) 1.60 Vs 1.59, India Volatility Index (VIX) unchanged at 20.38

For Existing Long Positions:

Nifty intraday stop loss is 11,790 and closing stop loss is 11,725.

Bank Nifty intraday stop loss is 23,600 and closing stop loss is 23,450.

For Existing Short Positions:

Nifty intraday and closing stop loss are 12,000.

Bank Nifty intraday and closing stop loss are 24,000.

For New Positions:

Buy Nifty with a stop loss of 11,790 and target 11,975, 12,000, 12,050, 12,100.

Sell Nifty in 12,100-12,150 range with a stop loss of 12,200 and target 12,050, 12,000, 11,950. 

Buy Bank Nifty with a stop loss of 23,600 and target 24,050, 24,175, 24,300, 24,450. 

Sell Bank Nifty in 24,450-24,600 range with a stop loss of 24,650 and target 24,300, 24,200, 24,100.

5 Stocks in F&O Ban:

New in Ban:  JSPL

Already in Ban:  Vedanta, Idea, BHEL, Adani Enterprises. 

Mazgaon Dock Listing Preview:

Expected to list around 250 against issue price of 145. Long term investors can hold, Short Term Investors can keep a stop loss of 225. Keep trailing your stop loss.

See Zee Business Live TV Streaming Below:

UTI AMC Listing Preview:

May list around issue price of 554. Our advice was to avoid listing gains.