Anil Singhvi’s Strategy May 10: Market Sentiment in Cautious; Sell Asian Paints Futures with Stop Loss 1370

Amid positive Domestic Institutional Investors (DIIs), neutral global market, Futures and Options (F&O), and negative foreign institutional investors (FII) cues, the short-term trend of the Indian market will continue to be negative on Friday, May 10, 2019, and sentiment is cautious.  

Continuing the declining trend for the seventh day, the domestic stock markets closed in a red on Thursday, May 9, 2019. On the day, BSE Sensex lost 230.22 points, 0.61%, to settle at 37,558.91. The Nifty 50 was down by 57.65 points, 0.51%, and closed at 11,301.80. Bank Nifty went down 109.80, 0.38%, to 28,884.60. Negative global stocks weighed on the sentiment amid concerns that the US and China would struggle to reach an agreement.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 10:
The small and medium day range for trading on Nifty lies between the mark of 11,250-11 and 11,200-11,400 respectively. 
The small and medium day range for trading on Bank Nifty lies between the mark of 28,775-29,025 and 28,500-29,300. 
Cover intraday short positions if Nifty trades above 11,360 and Bank Nifty above 29,050. 
The trend will remain weak with no buy signal till the two indices, Nifty and Bank Nifty, remains trading below 11,500 and 29,300 levels respectively. 

For Existing Long Positions:
Nifty intraday and Closing stop loss 11,250. 
Bank Nifty intraday and Closing stop loss 28,775. 

For Existing Short Positions:
Nifty Intraday stop loss 11,360 and Closing stop loss 11,500. 
Bank Nifty Intraday stop loss 29,050 and Closing stop loss 29,300. 

For New Positions:
Buy Nifty with a stop loss of 11,250 and target 11,350, 11,400. 
Sell Nifty near 11, 400 with a stop loss of 11,500 and target 11,350, 11,300. 

Buy Bank Nifty with a stop loss of 28,775 and target 29,000, 29,250. 
Sell Bank Nifty in 29,050-29,250 range with a stop loss of 29,300 and target 28,900, 28,800.

The put-call ratio (PCR) stands at 1.38 and the volatility index (VIX) is 25.48.
In F&O Ban: Jet Air

Results Analysis:
MGL Futures: Small disappointment but buy on dips. Good buy range is 895-905 with stop loss 880 and target 950. 

Stock of the Day:
Sell Voltas Futures: Stop loss 570 and target 535, 525. Worst operational results, poor margins at 7 per cent in line. 
Sell South Indian Futures: Stop loss 15.75 and target 14.75, 14.50. Poor asset quality, higher provisioning. 

Aaj Ka Hero:
Sell Asian Paints Futures: Stop loss 1370 and target 1335, 1325. Poor sales mix, Outlook for next 2 quarters weak.