Amid positive domestic institutional investors (DIIs), neutral futures & options (F&O) and negative global markets, foreign institutional investors (FIIs) and sentiment cues, the short-term trend of the Indian stock markets will be neutral on Thursday, February 27, 2020.
Domestic shares declined for the fourth straight session on Wednesday, February 26, 2020, amid weak global cues. The Nifty ended below the 11,700-mark. The spread of the coronavirus has rattled investors across the globe who fear new outbreaks will push down global demand.
The S&P BSE Sensex, fell 392.24 points or 0.97% at 39,888.96, its lowest closing level since 3 February 2020. The Nifty 50 index declined 119.40 points or 1.01% at 11,678.50, its lowest closing level since 1 February 2020. Nifty Bank lost 125.85 points, or 0.41%, to settle at 30,306.85.
Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for February 27:
Budget day lows Nifty 11,500-11,625 and Bank Nifty 29,625-29,825 are next strong support zone.
Strong selling zone on Nifty is 11,775-11,825 and Bank Nifty is 30,600-30,700.
The small day range for trading on Nifty is 11,625-11,775, while the medium and bigger ranges are 11,600-11,800 and 11,500-11,825 respectively.
The small day range for trading on Bank Nifty is 30,150-30,500, while the medium and bigger ranges are 30,000-30,600 and 29,825-30,700 respectively.
For Existing Long Positions:
Nifty intraday and closing stop loss 11,600
Bank Nifty intraday and closing stop loss 30,100.
For Existing Short Positions:
Nifty intraday and closing stop loss 11,830.
Bank Nifty intraday and closing stop loss 30,600.
For New Positions:
Sell Nifty with a stop loss of 11,830 and target 11,625, 11,600, 11,525.
Buy Nifty in 11600-11625 range, for aggressive traders, with strict stop loss 11,575 and target 11,675, 11,700, 11,775.
Sell Bank Nifty with a stop loss of 30,600 and target 30,150, 30,000, 29,850, 29,750.
Buy Bank Nifty in 30,000-30,050 range, for aggressive traders, with strict stop loss 29,950 and target 30,000, 30,100, 30,250.
Put-Call Ratio (PCR) is 1.01. The volatility index (VIX) shot up by 8% 18.26.
Already in F&O Ban: Yes Bank
Negative: Metals, Auto, Aviation and Banks.
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Stock of the Day:
Sell Bank Nifty Spot levels: Stop loss 30,600 and target 30,150, 30,000, 29,850.