Anil Singhvis strategy August 1: Banks, Metal and Auto sectors are Negative; Sell Eicher Futures with Stop Loss 16,600

Amid positive domestic institutional investors (DIIs), neutral futures and options (F&O), negative global markets, foreign institutional investors (FIIs) and sentiment cues, the short-term trend of the domestic Indian markets will be Negative today.

Earlier on Wednesday, July 31, 2019, the Benchmark Domestic indices closed with modest gains after witnessing losses in two sessions. Sensex and Nifty, both, appreciated even as cues from Asian stocks were negative. Sensex at Bombay Stock Exchange climbed 83.88 points or 0.22 per cent to end at 37,481.12. Nifty at National Stock Exchange also added 32.60 points or 0.29 per cent to settle at 11,118 while Bank Nifty gained 84.40 points or 0.29 per cent and closed at 28,876. 

IndusInd Bank (up 5.29 per cent), Tata Steel (up 4.32 per cent) and Yes Bank (up 4.24 per cent) were the top gainers of the day. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for August 1:
The small day range for trading on Nifty stands at 11,075-11,150 while the medium day range resides at 11,000-11,200. 
The small day range for trading on Bank Nifty stands at 28,750-28,950 while the medium day range resides at 28,550-29,100.
Further down risk opens if Nifty and Bank Nifty trades below 11,000 and 28,500.

For Existing Long Positions:
Nifty intraday and closing stop loss 11,000. 
Bank Nifty intraday and closing stop loss 28,500. 

For Existing Short Positions:
Nifty intraday and closing stop loss 11,200.
Bank Nifty intraday and closing stop loss 29,000.

For New Positions:
Sell Nifty with a stop loss of 11,150 and target 11,075, 11,000. 
Buy Nifty near 11,000 with a stop loss of 10,950 and target 11,075, 11,100. 
Sell Bank Nifty with a stop loss of 29,000 and target 28,750, 28,550. 
Buy Bank Nifty near 28,550 with a stop loss of 28,450 and target 28,700, 28,800. 

The put-call ratio (PCR) stands at 1.09 and the volatility index (VIX) is 13.66.

Sectors: Negative: Banks, Metals, Auto

Results Analysis:
Sell Eicher Futures: Stop loss 16,600 and target 16,100, 15,950, 15,800. Weak margins, lower volumes, most expensive auto stocks. 

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Stock of the Day: Sell UPL Futures: Stop loss 605 and target 580, 575. Weak Results due to one-off, don’t short if opens big gap down. 

Aaj Ka Hero: Buy Ashok Leyland Futures: Stop loss 68 and target 72, 74. Results in line, margins are better and short-covering expected.