Anil Singhvi’s Strategy August 19: Market Trend is Neutral; Auto Sector is Positive

Amid positive global markets, domestic institutional investors (DIIs) and sentiment, neutral futures and options (F&O) and negative foreign institutional investors (FIIs) cues, the short-term trend of the domestic Indian markets will be Neutral today, on August 19, 2019. Earlier on Friday, August 16, 2019, the domestic equity benchmarks closed with marginal gains amid positive cues from global stocks. Recovering losses of the morning session, the Sensex at the Bombay Stock Exchange (BSE) climbed 39 points or 0.10% to end at 37,350.33. Nifty at the National Stock Exchange (NSE) added 18.40 points or 0.17% to settle at 11,047.80. Similarly, Bank Nifty gained 197.80 points or 0.71% and closed at 28,217. UPL Limited, Power Grid Corporation, Maruti Suzuki and Yes Bank were the top gainers of the day.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for August 19:

Small day range for trading on Nifty stands at 11,000-11,100 while the medium-range resides at 10,925-11,175.

Small day range for training on Bank Nifty stands at 28,100-28,400 while the medium and bigger range lies between 28,000-28,500 and 27,750-28,600.

For Existing Long Positions:

Nifty intraday stop loss 11,000 and closing stop loss 10,925.

Bank Nifty intraday stop loss and closing stop loss 28,000.

For Existing Short Positions:

Nifty intraday and closing stop loss 11,125.

Bank Nifty intraday and closing stop loss 28,500.

For New Positions:

Buy Nifty in 11,000-11,025 range with a stop loss of 10,925 and target 11,050, 11,075, 11,125.

Sell Nifty in 11,100-11,150 range with a stop loss of 11,200 and target 11,100, 11,075.  

Buy Bank Nifty in 28,050-28,100 range with a stop loss of 27,950 and target 28,250, 28,400, 28,500.

Sell Bank Nifty in 28,400-28,500 range with a stop loss of 28,600 and target 28,250, 28,150.

The put-call ratio (PCR) is at 1.21 and the volatility index (VIX) is 16.65.

Sectors:

Positive: Auto

Listing Preview:

Spandana Sphoorty IPO: Expensive valuations, recommended to AVOID. IPO to list around 800-825. At least Rs30 to 50 below the issue price of Rs856.

Stock of the Day:

Sell Ujjivan Futures: Stop loss 283 and target 270, 268. Below 265 fresh weakness possible up to 250-255 range. Subsidiary IPO will bring down holding the company’s valuations.

Aaj Ka Hero:

Buy Sun Pharma Futures: Stop loss 410 and target 425, 430, 435. Entry into the Chinese market could be positive for the company.