Anil Singhvi’s Market Strategy December 5: Paper is Positive; Metals, Banks & Auto are Negative

Benchmark domestic stocks closed with losses on Tuesday, December 4, 2018. The BSE Sensex fell 106.69 points or 0.29 per cent to 36,134.31 while Nifty 50 at the National Stock Exchange also slipped 14.25 points or 0.13 per cent. Nifty Bank also went down by 163.75 points or 0.61 per cent. to settle at 26,693.80. 

Sun Pharma's stock on NSE shed 2.72 per cent on Tuesday while Mahindra & Mahindra (M&M) was down by 2.55 per cent. The top gainers of the day were BPCL and ONGC and they were high by 2.79 per cent and 2.60 per cent respectively. 

A cautious sentiment, negative global market, domestic institutional investors (DIIs), neutral future and option (F&O) and foreign institutional investors (FIIs) cues suggest that the short-term trend of the Indian market will be neutral on December 5, 2018. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for December 5: 

The small and bigger trading range on Nifty stands between 10,825-10,875 and 10,750-10,900 respectively. The extreme range resides at the mark of 10,700-10,925. 

The small and bigger trading range on Bank Nifty stands between 26,600-26,750 and 26,500-26,850 respectively. The extreme range resides at the mark of 26,400-27,000. 

The strong support range on the two indices, Nifty and Bank Nifty, stands at the mark 10,700-10750 and 26,400-26,500. 

Traders can increase their buying positions if the two indices start trading above 10,900 and 27,000. 

Buying positions should be reduced on Nifty if it starts trading below 10,850. 

Traders are advised to close their buying positions if the two indices close below the mark of 10,725 and 26,500 respectively. 

Sell and Buy strategy on Nifty 
Sell Nifty with a stop loss of 10,900 and target 10,825, 10,750, 10,725.  

Buy Nifty in the range of 10,700-10,750 with a stop loss of 10,650 and target of 10,800, 10,825. 

Sell and Buy strategy on Bank Nifty 
Sell Bank Nifty with a stop loss of 26,900 and target of 26,600, 26,500, 26,400.  

Buy Bank Nifty in the range of 26,400-26,500 with a stop loss of 26,300 and target of 26600, 26700

No stock in F&O ban
Sectors:
Negative: Metals, Banks, Auto

Positive: Paper

The put-call ratio (PCR) stands at 1.70 and the volatility index (VIX) is 18.11. 

Stock of the Day:
Buy JK Paper: Stop loss 162 and target 168, 170. Anti-dumping duty on paper for 3 years. 

Buy Star Papers: Stop loss 163 and target 168, 171, 173. 

Sell Tata Motors Futures: Stop loss 180 and target 172, 167. Rating downgrade by S&P. 

Sell Hindalco Futures: Stop loss 237 and target 226, 222.