Anil Singhvi’s Strategy March 11: Amid positive domestic institutional investors (DIIs), neutral futures & options (F&O), negative global markets, foreign institutional investors (FIIs) and sentiment cues, the short-term trend of the Indian stock markets will be negative on Wednesday, March 11, 2020.
At the stock markets, both the key indices posted its biggest single-day losses on Monday, March 9, 2020; while the rupee depreciated modestly, against the dollar. The S&P Sensex at the Bombay Stock Exchange sank 1,941.67 points, or 5.17 per cent, to end at 35,634.95. The Nifty crumbled 538 points, or 4.90 per cent, to 10,451.45. Likewise, Bank Nifty lost 1,338.85 points, or 4.79 per cent, to 26,462.60.
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Global stock markets witnessed a selloff amid a plunge in crude oil prices after OPEC failed to strike a deal with its allies on production cuts, adding to volatility already brought about by fears surrounding the coronavirus spread. Investor sentiments also turned weak amid the ongoing crisis at Yes Bank, which can impact the financial sector as a whole.
What the Government should do to handle global slowdown:
Aggressive interest rate cut by RBI by 0.75%
Big Personal Income tax cut
Stimulus package for Real Estate and Auto sector
Income disclosure scheme to bring liquidity into the business
The government should remove LTCG and reduce dividend tax
It should invest the money saved – by reduced import bill on crude oil – into the infrastructure sector
Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for March 11:
Next important support zone on Nifty is 9,950-10,000 and Bank Nifty is 25,500.
The small day range for trading on Nifty is 10,300-10,500 and the medium and bigger ranges are 10,200-10,750 and 10,000-10,825.
The small and medium-range for trading on Bank Nifty are 26,000-26,750 and 25,500-27,100.
Put-Call Ratio (PCR) High 1.04, Volatility Index (VIX) up by 20% 30.80.
For Existing Long Positions:
Nifty intraday and closing stop loss 10,300.
Bank Nifty intraday and closing stop loss 25,900.
For Existing Short Positions:
Nifty intraday and closing stop loss 10,750.
Bank Nifty intraday and closing stop loss 27,100.
For New Positions:
Sell Nifty in 10,650-10,750 range with the stop loss of 10,850 and target 10,500, 10,300.
Buy Nifty in 9,950-10,000 range with the stop loss of 99,00 and target 10,200, 10,300.
Sell Bank Nifty in range of 26,750-27,100 range with the stop loss of 27,200 and target 26,500, 26,000.
Buy Bank Nifty appx. near 25500, I am unable to find exact entry-level, with the stop loss of 25,400 and target 25,900, 26,000, 26,400.
No stock in F&O Ban