Anil Singhvi's Market Strategy October 5: Oil & Gas sector is negative; Market may reverse its direction post RBI policy
The market witnessed a sell-off in the second half of the day on Thursday, October 4, 2018, and closed lower by more than 2 per cent . S&P BSE Sensex closed down by 806.47 points (2.24%) at 35,169.16 while Nifty 50 was down by 259 points (2.39%) to close at 10,599.25.
The market witnessed a sell-off in the second half of the day on Thursday, October 4, 2018, and closed lower by more than 2 per cent. S&P BSE Sensex closed down by 806.47 points (2.24%) at 35,169.16 while Nifty 50 was down by 259 points (2.39%) to close at 10,599.25.
The Nifty Bank also went down by 250.60 (1%) to close at 24,819.30.
Amid positive domestic institutional investors (DIIs), negative global market, future and option (F&O), foreign institutional investors (FII) and weak sentiment cues, the short-term trend of the Indian market will be negative on October 5, 2018.
Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 5:
Nifty and BankNifty both closed below their closing stop loss levels.
RBI policy will be the key trigger today. The market may reverse its direction post RBI policy.
BankNifty will give direction to markets today.
Deciding levels on the two indices, Nifty and BankNifty, for today stands at the mark of 10600 and 24800 respectively.
The small trading range on Nifty stands at 10,500-10,750 while the bigger range lies between 10,400-11,850.
The small and bigger trading range on BankNifty lies between 24,700-25,000 and 24,500-25,200.
The next important support on the two indices stands at 10,500 and 24,500 respectively.
The selling zone on Nifty and BankNifty lies between 10,850-10,950 and 25,000-25,200.
Traders can increase their buying positions if the two indices close after going above the mark of 11,000 and 25,100.
Buy and Sell strategy on Nifty:
Buy Nifty with a stop loss of 10,500 and target of 10,600-10,700-10,750.
Sell Nifty in 10,700-10,750 range with stop loss 10,800 and target of 10600.
Buy and Sell strategy on BankNifty:
Buy BankNifty near 24700 with a stop loss of 24,500 and target 24,800-24,900-25,000-25,150.
Sell BankNifty in 25,100-25,200 range with a stop loss of 25,200 and target of 24,900-24,800.
Negative: Oil & Gas
No stock in F&O Ban today
The put-call ratio (PCR) stands at 1.21 and the volatility index (VIX) is 18.91.
Stock of the Day:
Sell HPCL Futures with Stop loss 222 and target 200, 192
Sell BPCL Futures with stop loss 340 and target 320, 305
Sell IOC Futures with stop loss 142 and target 132, 128