Anil Singhvi's Market Strategy October 9: Metals and PSUs are Negative; IDBI enters F&O Ban

Breaking the losing streak of 3 days, the Indian stock markets ended in the green on Monday, October 8, 2018. The day was filled with wild swings in both directions. Nifty closed up by 31.60 points or 0.31 per cent at 10,348.05 while S&P BSE Sensex ended up 97.39 points or 0.28 per cent at 34,474.38. 

Hindustan Petroleum Corporation Limited (HPCL) and Yes Bank were the top performers of the day – rising by 8.54 per cent and 7.65 per cent respectively.

Amid positive domestic institutional investors (DIIs), neutral future and option (F&O), foreign institutional investors (FII), negative global market and weak sentiment cues, the short-term trend of the Indian market will be negative on October 9, 2018.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for October 9: 
Markets were oversold so small recovery seen due to the stable crude.

The deciding level on Nifty and BankNifty stands at 10,300 and 24,500.
 
The small trading range in Nifty stands at 10250-10400 while the bigger range lies at the mark of 10,200-10,500 and the extreme range lies between 10,000-10,600. 

The small, bigger and extreme trading range on BankNifty lies between 24,450-24,750, 24250-24800 and 24,000-25,000. 

Next important support on Nifty and BankNifty is available at the mark of 10,200 and 24,250. 

The big selling zone on Nifty and BankNifty lies between 10,500-10,600 and 24,800-25,000.  

Traders are advised to cut on their positions if the two indices, Nifty and BankNifty, trades above the mark of 10,300 and 24,400 respectively. 

Traders can increase their buying positions on the two indices if they close above the mark of 10,600 and 24,800. 
 
Buy and Sell strategy on Nifty:
Buy Nifty in 10,200-10,250 range with a stop loss of 10,175 and target of 10,300-10,350-10,400. 

Sell Nifty in 10,400-10,500 range with a stop loss 10,550 and target 10,350-10,300-10,200. 

Buy and Sell strategy on BankNifty:
Buy BankNifty near 24250 with stop loss 24,200 and target 24,400-24,500.  

Sell BankNifty with stop loss 24,800 and target 24,500-24,400-24,250. 
 
Enters F&O Ban today: IDBI
 
The put-call ratio (PCR) stands at 1.12 and the volatility index (VIX) is 20.15. 

Watch this Zee Business video here:

Sectors:
Negative: Metals, PSU
 
Stock of the Day:
Buy Britannia Futures with stop loss 5500 and target 5650. The company has issued bonus NCD at Rs 30. 

Sell Reliance Capital Futures with stop loss 240 and target 225, 222, 210. CARE reduced Long-term rating to AA. 

Sell Tata Motors Futures with stop loss 217 and target 209, 205, 202. China Jaguar Land Rover (JLR) sales are down by 43 per cent.