Anil Singhvi’s Strategy February 15: Aviation, Oil & Gas, FMCG are Negative; Sell Nestle Futures with Stop Loss 10,800

Positive domestic institutional investors (DIIs), neutral futures and options (F&O), negative global market, foreign institutional investors (FII) and sentiment cues suggest that the short-term trend of the Indian market will be negative on Friday, February 15, 2019. Earlier, the benchmark indices, Sensex and Nifty, continued the downtrend momentum and finished in a red on Thursday, February 14, 2019. On the day, the BSE Sensex fell 157.88 points or 0.44%. to close at 35,876.22 while Nifty 50 lost 47.65 points, or 0.44%, and ended at 10,746.05. Nifty Bank gained 85.20 points, or 0.32%, and closed at 26,970.60. 

Yes Bank, Indiabulls Housing Finance and Zee Entertainment were the top gainers while IOC, BPCL and Hindalco were the major losers of the day. 

Zee Business's Managing Editor Anil Singhvi's Market Strategy for February 15: 

27,000 is going to be a deciding level on Bank Nifty. 
The small and medium trading ranges on Nifty lie between 10,700-10,800 and 10,650-10,825 while the extreme range stands at 10,600-10,850. 
In the case of Bank Nifty, the small and medium trading ranges lie between 26,800-27,050 and 26,600-27,150 while the extreme range stands at 26,500-27,250. 

For Existing Long Positions:
Stop loss already triggered in Nifty and Bank Nifty below 10,900 and 27,150. 

For Existing short positions:
Nifty stop loss 10,800 and target 10,700, 10,650, 10,600. 
Bank Nifty stop loss 27,150 and target 26,800, 26,600. 

For New Positions:
Sell Nifty in 10,800-10,850 range with a stop loss of 10,900 and target 10,750, 10,700. 
Buy Nifty in 10,700-10,650 range with a stop loss of 10,600 and target 10,750, 10,775. 
Sell Bank Nifty in 27,050-27,150 range with a stop loss of 27,250 and target 26,900, 26,800. 
Buy Bank Nifty near 26,800 with a stop loss of 26,750 and target 26,900, 27,000. 

The put-call ratio (PCR) stands at 1.35 and the volatility index (VIX) is 15.77.

Sectors:
Negative: Aviation, Oil & Gas, FMCG

Total 7 stocks in F&O Ban
2 Enter Ban: CG Power, PC Jewellers.
Out of Ban: Reliance Capital.

5 Already in Ban: IDBI, Jet Airways, Reliance Power, Adani Enterprises and Jain Irrigation.

Stock of the Day:
Sell Nestle Futures: Stop loss 10,800 and target 10,200, 10,100, 9,975. Poor margins down to 19%, Weak demand outlook. 
Sell Voltas Futures: Stop loss 520 and target 495, 485. Weak Margins below 8%. Demand outlook weak. Infra business in gulf also under pressure. 

Aaj Ka Hero:
Sell GMR Futures: Stop loss 15.50 and target 13.75, 13.50, 13. Huge loss of Rs.550 crore. Value reduction of Rs.2250 crore investment is not accounted for is a big negative. 
Sell PFC Futures: Stop loss 104 and target 97, 95, 92. PFC to buy REC stake at 20% premium. Company to raise Rs.10,000 crore as debt for this stake.