Anil Singhvi’s Strategy May 7: Metal and Bank sectors are Positive; Buy ITC Futures with Stop Loss 302

Amid neutral global outlook, Futures and Options (F&O), Domestic Institutional Investors (DIIs) and negative foreign institutional investors (FII) cue, the short-term trend of the Indian market will remain neutral on Tuesday, May 7, 2019, and sentiment is cautious. 

Earlier, the domestic stocks on Monday, May 6, 2019, cracked around one per cent in line with global sell-offs, amid renewed fears that trade negotiations between the US and China are on the verge of collapse. The Sensex at the Bombay Stock Exchange declined 362.92 points (0.93 per cent) to close at 38,600.34. The Nifty 50 at the National Stock fell 114 points (0.97 per cent) to settle at 11,598.25. The Bank Nifty crawled down 335.70 points, 1.12 per cent, and closed at 29,618.45.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 7:

11,600 and 29,650 are the deciding levels on Nifty and Bank Nifty respectively.

The small and medium day range for trading on Nifty lies between Nifty 11,600-11,650 and 11,575-11,700. The bigger range stands at 11,525-11,750.

The small and medium day range for trading on Bank Nifty lies between Nifty 29,550-29,750 and 29,450-29,925.

Strong support zone on the two indices, Nifty and Bank Nifty, lies between 11,525-11,575 and 29,450-29,550.

VIX up by 10 per cent at 26.434, volatility will increase.  

For Existing Long Positions:

Nifty and Bank Nifty intraday and Closing all stop loss triggered.

For Existing Short Positions:

Nifty Intraday and Closing stop loss 11,725.

Bank Nifty Intraday stop loss 30,150 and Closing stop loss 30,050.

For New Positions:

Buy Nifty with a stop loss of 11,575 and target 11,650, 11,700, 11,725.

Sell Nifty in 11,700-11,750 range with a stop loss of 11,800 and target 11,650, 11,600.

Buy Bank Nifty with a stop loss of 29,450 and target 29,750, 29,850, 29,925.

Sell Bank Nifty in 29,900-30,000 range with a stop loss of 30,050 and target 29,800, 29,750.

The put-call ratio (PCR) stands at 1.30 and the volatility index (VIX) is 26.43.

In F&O Ban: Jet Airways

Sectors:

Positive: Recovery in Metals and Banks

Result Analysis:

ICICI Futures: Results in line, buy on dips. Stock to trade in the 385-415 range.

 Stock of the Day:

Buy Marico Futures: Stop loss 335 and target 350, 355. 8 per cent volume growth and operationally good results.  

Aaj Ka Hero:

Buy ITC Futures: Stop loss 302 and target 310, 315. Strong volume growth in cigarette business expected.