Anil Singhvi’s Strategy May 16: Market Sentiments are Negative; Sell Indigo Futures with Stop Loss 1620

Positive Domestic Institutional Investors (DIIs), neutral global market and futures and options (F&O), negative foreign institutional investors (FII) and sentiment cues suggest that the short-term trend of the Indian market will be negative on Thursday, May 16, 2019. 

Earlier on Wednesday, May 15, 2019, the benchmark indices resumed their downward trend as investors took money off the table amid global trade jitter and cautious approach to general elections. In a volatile session, the BSE Sensex lost 203.65 points, 0.55 per cent, to close at 37,114.88. Nifty 50 at the National Stock Exchange dropped 65.05 points, 0.58 per cent, to 11,157.00 and Bank Nifty was 212.75 points, 0.74 per cent, down to settle at 28,616.45. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 16:  
The small and medium day range for trading on Nifty lies between the mark of 11,100-11,250 and 11,050-11,300 respectively. The bigger range stands at 11,000-11,350. 
The small and medium day range for trading on Bank Nifty lies between the mark of 28,500-28,800 and 28,300-28,900 respectively. The bigger range stands at 28,250-29,050. 
Weak Trend on both indices, Nifty and Bank Nifty, if they continue to trade below the mark of 11,300 and 28,900 respectively. 

For Existing Long Positions:
Nifty intraday and Closing basis stop loss 11,100. 
Bank Nifty intraday and Closing basis stop loss 28,500. 

For Existing Short Positions:
Nifty Intraday and Closing stop loss 11,300. 
Bank Nifty Intraday and Closing stop loss 28,900.

For New Positions:
Sell Nifty in 11,225-11,275 range with a stop loss of 11,350 and target 11,200, 11,150, 11,100. 
Buy Nifty near 11,050 with a stop loss of 11,000 and target 11,100, 11,150. 
Sell Bank Nifty in 28,800-28,900 range with a stop loss of 29,050 and target 28,650, 28,550. 

The put-call ratio (PCR) stands at 1.14 and the volatility index (VIX) is 28.66.

In F&O Ban: Nil

Stock of the Day: Sell Petronet LNG Futures: Stop loss 235 and target 220, 212, 208. Weak operational results, Margins fell by 2 per cent. 

Aaj Ka Hero: Sell Indigo Futures: Stop loss 1620 and target 1585, 1560. Higher crude and weak rupee.