Amid negative global markets, foreign institutional investors (FIIs), positive domestic institutional investors (DIIs), futures & options (F&O) and cautious sentiment cues, the short-term trend of the Indian stock markets will be neutral on Monday, February 1, 2021.
Domestic equity benchmarks extended losses for the sixth straight session on Friday, January 29, 2021. Weak global cues triggered selling pressure. Investors were also cautious ahead of the Union Budget on Monday, February 1, 2021. The BSE Sensex closed below 46,500-mark while the NSE Nifty settled below 13,700 level.
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The Sensex plunged 589 points, or 1.26 per cent, down at 46,286. The NSE Nifty also declined 183 points, or 1.32 per cent to trade at 13,635. But Bank Nifty rose 207.20 points, or 0.68 per cent, to close at 30,565.50. The broader market at BSE also fell but outperformed the Sensex. The BSE Mid-Cap index ended 0.69 per cent down and the BSE Small-Cap index slipped 0.25 per cent.
Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for February 1:
Pre Budget support zone on Nifty is 13,450-13,550.
Pre Budget first higher zone on Nifty is 13,725-13,825.
Pre Budget first support zone on Bank Nifty is 30,150-30,250.
Pre Budget first higher zone on Bank Nifty is 31,000-31,175.
FIIs increased Index long at 63% Vs 62%
PCR oversold at 0.98 Vs 1.34
VIX up by 4% at 25.34
For Existing Long Positions:
Nifty intraday and closing stop loss are 13,500.
Bank Nifty intraday and closing stop loss are 30,000.
For Existing Short Positions:
Nifty intraday and closing stop loss are 13,825.
Bank Nifty intraday and closing stop loss are 31,200.
No Stocks in F&O Ban
Long term growth-oriented and short-term tax oriented.
Budget to focus on projecting India as the best alternative to China for manufacturing and Investments by a global player.
How the Budget could Be:
- Govt to focus on reforms and opening up of FDI in many small and big sectors.
- Big push expected for Make in India and MSMEs.
- Big boost expected in Insurance, Healthcare and Pharma sectors.
- Boost for the infrastructure sector, cement sector as the best investment play.
- PSU Banks may see small action on Bad Bank creation.
- To increase revenue, more tax or cess on higher-income slabs.
- Be ready to pay more tax on income from Stock Market Investments. May increase Short Term Capital Gains Tax from 15 to 20%.
Market Volatility Index indicates 5-6% move on either side.
Strong support zone on Nifty is 13,250-13,325, below that 12,925-13,050 is rock bottom support.
Higher zone on Nifty is 13,800-14,050, above that 14,125-14,250 is strong sell zone.
Strong support zone on Bank Nifty is 29,450-29,625, below that 29,000-29,200 is rock bottom support.
Higher zone on Bank Nifty is 31,000-31,175, above that 31,550-31,650 is strong sell zone.
If Market falls sharply, invest sizable money DIRECTLY into GOOD QUALITY STOCKS or DIVERSIFY MUTUAL FUNDS OR BUY ETFs.
Stocks to Watch for Investments:
General and life insurance companies, pharma & API companies, hospital stocks and cement stocks.
Accumulate ITC, L&T, BSE, DLF, Ultratech & BPCL, if fall sharply.