Anil Singhvi’s Strategy October 4: Market Trend to be Neutral; buy United Spirits Futures with Stop Loss 614

Amid positive global markets, domestic institutional investors (DIIs), neutral futures and options (F&O), negative foreign institutional investors (FIIs) cues, the short-term trend of Indian share market will be neutral on Friday, October 4, 2019, while sentiment will be cautious.

Dragged by weak global markets, the key benchmark indices extended losses for the fourth consecutive session on Thursday, October 3, 2019. The Sensex at Bombay Stock Exchange declined 198.54 points or 0.52 per cent to close at 38,106.87. The Nifty at National Stock Exchange also fell 45.90 points or 0.40 per cent to settle at 11,314. Bank Nifty lost 311.40 points or 1.07 per cent to settle at 28,414.10. Metal shares tumbled on fears of weak global growth. Yes Bank bounced 33.59% after management clarified that the bank was on a firm financial footing.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 4:

Day support zone on Nifty 11,250-11,275 and Bank Nifty 28,050-28,250.
Strong buy zone Nifty 11,075-11,175 and Bank Nifty 27,000-27,500.
Higher zone Nifty 11,450-11,500 and Bank Nifty 29,000-29,500.
The small and medium day range for trading on Nifty lies between 11,250-11,375 and 11,200-11,450 while the bigger range stands at 11,075-11,500.
The small and medium day range for trading on Bank Nifty lies between 28,250-28,750 and 28,050-28,950 while the bigger range stands at 27,500-29,500

For Existing Long Positions:
Nifty intraday and closing stop loss 11,250.
BankNifty intraday and closing stop loss 28,250.

For Existing Short Positions:
Nifty intraday and closing stop loss 11400.
Bank Nifty intraday and closing stop loss 28,750.

For New Positions:
Buy Nifty with a stop loss of 11,240 and target 11,360, 11,400, 11,450.
Sell Nifty in 11,400-11,450 range with a stop loss of 11,500 and target 11,375, 11,350.
Buy Bank Nifty with a stop loss of 28,000 and target 28,750, 28,950, 29,100, 29,400.
Sell Bank Nifty in 29,400-29,500 range with a stop loss of 29,700 and target 29,100, 28,950.
The put-call ratio (PCR) is at 1.18 and the volatility index (VIX) is 17.70.

Bharat 22 ETF Preview: Discount not attractive, but the outlook for PSU stocks improving. Valuations reasonable can apply for market-related returns.

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Stock of the Day: 
Buy United Spirits Futures: Stop loss 614 and target 632, 640. Telangana Liquor policy is positive for the sector.