Anil Singhvi’s Market Strategy January 8: Private Banks are Negative; NBFC to be in Focus

Benchmark domestic stocks, Sensex, Nifty 50 and Nifty Bank, closed with gains for the second session in a row on Monday, January 7, 2019. The three indices logged gains of 0.4 per cent amid positive global cues. 

On the day, S&P BSE Sensex climbed 155.06 points, or 0.43 per cent, to end at 35,850.16. The Nifty 50 surged 44,45 points, or 0.41 per cent, to close at 10,771.80 while Nifty Bank was up by 109.55 points, or 0.40 per cent to settle at 27,304.55. 

Amid positive foreign institutional investors (FII), neutral global market, neutral future and option (F&O), domestic institutional investors (DIIs) and cautious sentiment cues the short-term trend of the Indian market will be positive on Tuesday, January 8, 2019.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for January 8: 

The small and medium trading range on Nifty lies between 10,725-10,825 and 10,700-10,850 while the extreme range stands at 10,650-10,900. 

The small and medium trading range on Bank Nifty lies between 27,200-27,400 and 27,050-27,500 while the extreme range stands at 26,900-27,650. 

Traders are advised to close their positions on Nifty and Bank Nifty if they close below the mark of 10,725 and 27,150 respectively. However, they should close their positions if the two indices closed below 10,650 and 26,900.  

Sell and Buy strategy on Nifty 

Sell Nifty with a stop loss of 10,850 and target of 10,725,10,700. 

Buy Nifty in 10,700-10,725 range with a stop loss of 10,650 and target of 10,775, 10,800. 

Sell and Buy strategy on Bank Nifty 

Sell Bank Nifty with a stop loss of 27,500 and target of 27,200, 27,150, 27,050. 

Buy Bank Nifty in 27,000-27,100 range with a stop loss of 26,900 and target of 27,250, 27,400, 27,450. 

The put-call ratio (PCR) stands at 1.36 and the volatility index (VIX) is 16.30.

2 Already in F&O Ban: Adani Power, Jet Airways.

Watch this Zee Business tweet video: 

नॉनस्टॉप डेढ़ घंटा बाजार में करें कमाई, @AnilSinghviZEE और बाजार के दिग्गजों के साथ #FinalTrade में #LIVE https://t.co/cbfEwdKF1z

— Zee Business (@ZeeBusiness) January 7, 2019

Sectors in focus: NBFC

Negative: Private Banks

Stock of the Day:

Sell Bandhan Bank: Target 485. The stock may fall 3 to 6% more, Sell and Exit if you have delivery also. 

Sell and Exit Gruh Finance also. Target 295. 

Aaj Ka Hero:

Sell Tata Elexi Futures: Stop loss 985 and target 965, 955, 940. Weak results expected. Huge shorts created. Book profit or keep trailing stop loss.