Anil Singhvi’s Strategy October 18: Metals are Positive; NBFC & Banks are Negative

Amid positive foreign institutional investors (FIIs) and sentiments, neutral global markets and futures & options (F&O) and negative domestic institutional investor (DII) cues, the short-term trend of Indian share market will be positive on Friday, October 18, 2019.

Earlier on Thursday, October 17, 2019, equity benchmarks closed with gains for fifth sessions in a row. Domestic indices climbed more than one per cent amid mixed global cues. Sentiment got a boost after the European Union (EU) and UK negotiators reached a draft agreement on a new Brexit deal. BSE Sensex surged 453.07 points or 1.17 per cent to regain 39,000-mark at 39,052.06. The NSE Nifty also ended, 122.35 points or 1.07 per cent, higher to reclaim 11,500 level at 11,586.35. Similarly, Bank Nifty gained 450.65v points or 1.58 per cent and closed at 28,989.45.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 18:

Strong buy zone on Nifty 11,425-11,475 and Bank Nifty is 28,200 to 28,550.

Higher zone on Nifty 11,650-11,700 and Bank Nifty is 29,200-29,400.  

11,600 and 29,000 are the deciding levels on Nifty and Bank Nifty respectively.

The small day range for trading on Nifty stands at 11,500-11,600 while the medium and bigger ranges lie between 11,475-11,650 and 11,425-11,700.

The small day range for trading on Bank Nifty stands at 28,750-29,050 while the medium and bigger ranges lie between 28,550-29,200 and 28,400-29,400.  

For Existing Long Positions:

Nifty intraday stop loss 11,475 and closing stop loss 11,425.

BankNifty intraday stop loss 28,750 and closing stop loss 28,500. 

For Existing Short Positions:

Nifty intraday and closing stop loss 11,600.

Bank Nifty intraday and closing stop loss 29,100. 

For New Positions:

Sell Nifty with a stop loss of 11,700 and target 11,500, 11,475, 11,450.

Buy Nifty in 11,425-11,475 range with a stop loss of 11,400 and target 11,500, 11,550.

Sell Bank Nifty with a stop loss of 29,100 and target 28,800, 28,600, 28,500.

Buy Bank Nifty in 28,500-28,550 range with a stop loss of 28,400 and target 28,650, 28,750, 28,950. 

The put-call ratio (PCR) is 1.40 and the volatility index (VIX) is 15.88. 

Sectors:

Positive: Metals buy on dips

Negative: NBFC, Banks

Stock of the Day:

Sell TVS Motors Futures: Stop loss 445 and target 430, 420, 410. Rs110 crore one-off income. 8.8% margins not sustainable in the next quarters.