Anil Singhvi’s Strategy May 8: Auto, Banks, NBFC, High Beta Midcaps are Negative; Sell Ceat Futures with Stop Loss 1040

Amid positive Domestic Institutional Investors (DIIs), neutral Futures and Options (F&O), and negative global outlook, foreign institutional investors (FII) and sentiment cues, the short-term trend of the Indian market will be negative today, May 8, 2019. 

Tracking mixed global cues amid worries about US-China trade dispute, on Tuesday, May 7, 2019, the key domestic indices, Nifty and Sensex, ended sharply lower. The Nifty 50 ended a tad below 11,500 level at 11,497.90 after losing 100.35 points (0.87%). The Sensex at the Bombay Stock Exchange slumped 323.71 points (0.84%) to close at 38,276.63. Similarly, Bank Nifty lost 330.25 points (1.12%) to settle at 29,288.20.

Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 8: 
11,500 and 29,250 are going to be the deciding levels on Nifty and Bank Nifty respectively. 
For Intraday no strength till Nifty trades above 11,500. 
Below 11,650 Nifty is weak only and no buy signal. 
Small day range for trading on Bank Nifty lies between 29,000-29,500. Below 29,000 more downside risks will open. 
Below 29,650 Bank Nifty is weak only and no buy signal. 

For Existing Long Positions:
Nifty and Bank Nifty intraday and Closing all stop loss triggered. 

For Existing Short Positions:
Nifty Intraday stop loss 11,600 and Closing stop loss 11,650.
Bank Nifty Intraday stop loss 29,550 and Closing stop loss 29,650. 

For New Positions:
Sell Nifty with a stop loss of 11,600. 
Buy Nifty only above 11,600 with a stop loss of 11,500 and target 11,650, 11,700
Sell Bank Nifty with a stop loss of 29,550 and target 29,000
Buy Bank Nifty only above 29,550 with a stop loss of 29,450 and target 29,750, 29,650, 29,750. 
The put-call ratio (PCR) stands at 1.14 and the volatility index (VIX) is 26.48.
In F&O Ban: Jet Airways. 

Sectors:
Negative: Auto, Banks, NBFC, High Beta Midcaps. 

Result Analysis:
Vedanta Futures: EBIDTA better than expectation. May see short covering after a gap down opening. 155-160 strong support zone. 170-175 profit booking Range. 

Stock of the Day:
Sell Ceat Futures: Stop loss 1040 and target 1000, 980. Poor operational results, the outlook for the next quarter also weak. 

Aaj Ka Hero:
Sell Escorts Futures: Stop loss 660 and target 635, 625. Weak operational results and slowdown in tractor sales ahead. 

Listing Preview:
Newgen Tech: Stock to list in 250-270 range. Book profit on the listing. Keep stop loss of 235.