Anil Singhvis Market Strategy October 19: Oil Companies are positive, NBFC, Banks & Cement are negative

After trading in positive territory in the first half, the markets witnessed a sharp sell-off in the second half on Wednesday, October 17, 2018, and closed in the red. Nifty 50 closed 131.70 points (1.24%) down at 10,453.05 while BankNifty ended lower 401.05 points (1.57 %) at 25,188.60.  Similarly, Sensex was down by 382.90 points (1.09%) and closed at 34,779.58. 

NBFCs were responsible for the fall as Indiabulls Housing dropped by 14.27 per cent and Bajaj Finance witnessed a decline of 6.97 per cent. IT stocks held on to gains with HCL Tech up by 1.85 per cent and Infy up by 1.47 per cent. 

Amid negative global market, sentiment and neutral domestic institutional investors (DIIs), future and option (F&O) and foreign institutional investors (FII) cues, the short-term trend of the Indian market is set to be negative on Friday, October 19, 2018. 

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

10,300 and 25,000 are going to be the deciding levels on Nifty and BankNifty. 

The small trading range on Nifty lies at 10,300-10,450 while the bigger and extreme range resides between 10,200-10,500 and 10,135-10,550 respectively. 

In the case of BankNifty, the small range lies at 24,800-25,200 while the bigger and extreme range stands between 24,700-25,300 and 24,500-25,500 respectively. 

Short covering levels on the two indices, Nifty and BankNifty, lies at 10,135-10,200 and 24,500 respectively. 

Traders are suggested to reduce their buying positions if Nifty and BankNifty closes below the mark of 10,300 and 24,800. 

Selling Strategy on Nifty and BankNifty

Sell Nifty with a stop loss of 10,450 and target of 10,325-10,250-10,200. 

Sell BankNifty with a stop loss of 25,100 and target 24,800-24,700-24,500. 

Enter in F&O Ban: DHFL & Jet Air

Out Of Ban: IDBI

Already In F&O Ban: Adani Power

Put-call ratio (PCR) stands at 1.11 and the volatility index (VIX) is 17.98. 
 
Sectors:

Negative: NBFC, Banks, Cement

Positive: Oil Companies. Buy on dips. 
 
Result Analysis:

ACC: Volume growth good but Margins weak, operationally weak. 1480-1510 is supported range. 

Stock of the Day:

Sell RIL Futures: Stop loss 1165 and target 1110, 1090. Disappointing results

Sell Mind tree: Stop loss 960 and target 945, 930, 900. Operationally weak, Expensive Valuation. 

Sell Mphasis: Stop loss 1140 and target 1060, 1020. Poor performance, Hedging policy backfired. 

Buy Cyient: Stop loss 660 and target 685-690. Excellent Performance on margins and strong outlook.