Anil Singhvis Market Strategy September 18: Market trend is Negative; PSU & FMCG are positive
Neutral domestic institutional investors (DIIs), future and option (F&O) and negative global outlook, as well as foreign institutional investors (FII) cues, suggest that the short-term trend of the Indian market is negative on September 18, 2018, and the traders are advised to be cautious while trading in the market today.
The S&P BSE Sensex on Monday, September 17, 2018, tanked 505.13 points, or 1.33 per cent, to close at 37,585.51. Similarly, the Nifty 50 at the National Stock Exchange slumped 137.45 points, or 1.19 per cent, to 11,377.75 and the Nifty Bank went down by 343.55 points or 1.26 per cent to close at 26,820.30.
Neutral domestic institutional investors (DIIs), future and option (F&O) and negative global outlook, as well as foreign institutional investors (FII) cues, suggest that the short-term trend of the Indian market is negative on September 18, 2018, and the traders are advised to be cautious while trading in the market today.
Zee Business's Managing Editor Anil Singhvi's Market Strategy for September 18:
11,400 and 26,800 are going to be the deciding level on Nifty and BankNifty.
The small trading range on NIfty stands at 11,300-11,400 and the bigger range resides between 11,250-11,450.
The trading range on BankNifty stands at 25,550-27,000.
Buy and Sell strategy on Nifty
Sell Nifty in 11425-11450 range with a stop loss of 11,475 and target of 11,400-11,350-11,300.
Buy Nifty near 11300-11325 range with a stop loss of 11,250 and target of 11,350-11,375.
Buy and Sell strategy on BankNifty
Sell BankNifty with a stop loss of 27,000 and target of 26,700- 26,550.
Buy BankNifty in 26,550-26,500 range with a stop loss of 26,450 and target of 26,800.
The put-call ratio (PCR) stands at 1.28 and the volatility index (VIX) is 14.50.
Watch Zee Business video here:
Sectors:
Negative: Banks & Metals
Positive: PSU & FMCG
Out of F&O Ban: Balrampur Chini
Already in Ban: Adani Enterprises
Stock of the Day:
Sell Bank of Baroda Futures: Stop loss 136 and target is 131, 128, 124, 121
Forced Merger is short term negative
Exit Vijaya Bank
Sell Dena Bank if opens with a big gap, the ratio will not be good for Dena
Buy HUL Futures: Stop loss 1585 and target is 1625, 1645
Strong management commentary
Sell all weak PSU banks
Long-term Positives:
The bigger bank will get better valuations.
Cost saving benefits.
The road to resolving NPA and capital infusion issues of banks.
Short term Negatives:
Return on Assets of the combined entity will be negative.
The forced merger is not good in the short term for strong PSU Banks.
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