Amid positive futures & options (F&O), the neutral global market & domestic institutional investors (DIIs), and negative foreign institutional investors (FIIs) & sentiment cues, the short-term trend of the Indian stock markets will be Negative on Monday, February 3, 2020.
Domestic shares plunged in a special trading session on Saturday, February 1, 2020, as the Union Budget announcements failed to lift sentiment of the investors. Confusion regarding income tax slabs, lack of sectoral perks and no tweaks in long-term capital gains (LTCG) tax helped the share prices nosedive. S&P BSE Sensex fell 987.96 points, or 2.43%, to 39,735.53. The Nifty 50 broke both the crucial 100 and 200 days simple moving averages and fell by 300.25 points, or 2.51%, to end at 11,661.85. Nifty Bank, which posted the second-biggest one-day fall ever, dropped 1012.70 points, or 3.32%, and closed below 30,000-mark at 29,820.90.
Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for February 3:
Next important support on Nifty is 11,450-11,500 and Bank Nifty is 29,200-29,300.
Important higher levels on Nifty is 11,800 and Bank Nifty is 30,250-30,500.
Oversold Put-Call Ratio (PCR) at 0.86, short-covering expected from lower levels. The volatility index (VIX) up 16.84.
For Existing Short Positions:
Nifty intraday 11,700 and closing stop loss 11,800.
Bank Nifty intraday 30,000 and closing stop loss 30,500.
No stock in F&O Ban
Positive: OMC, High dividend PSU stocks buy on dips.
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Stock of the Day:
Sell Hero Moto Futures: Stop loss 2465 and target 2405, 2380. Disaster monthly sales numbers at 5 lakh units.