Anil Singhvi’s Strategy May 6: Sell Banks & NBFCs on every rise; Buy Pharma on Dips

Anil Singhvi’s Strategy May 6: Amid neutral global markets, futures & options (F&O), negative foreign institutional investors (FIIs), domestic institutional investors (DIIs), and cautious sentiment cues, the short-term trend of the Indian stock markets will be Neutral on Wednesday, May 6, 2020. 

The domestic share markets closed in a red on Tuesday, May 5, 2020. The BSE Sensex settled at 31,453.51, plunging 261.84 points, or 0.83 per cent. The broader Nifty suffered a loss of 87.90 points, or 0.95 per cent, to close at 9,205.60. Similarly, Bank Nifty lost 472 points, or 2.39 per cent, to 19,271.75.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 6:

Strong Support Zone on Nifty is 8,900-9,050, and Higher Range is 9,300-9,500.

Last Support Range on Bank Nifty is 18,900-19,050, below that sharp fall till 18,200-18,500 is possible.

Higher Range on Bank Nifty is 19,600-19,900.

The small day range for trading on Nifty is 9,125-9,250, while the medium and bigger ranges are 9,050-9,300, 9,000-9,450 respectively. 

The small day range for trading on Bank Nifty is 19,050-19,500, while the medium and bigger ranges are 18,800-19,750 and 18,500-19,900 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 9,150

Bank Nifty intraday and closing stop loss 18,900

For Existing Short Positions:

Nifty intraday stop loss 9,300 and closing stop loss 9,400.

Bank Nifty intraday and closing stop loss 19,750.

For New Positions:

Sell Nifty in 9,250-9,325 range with a stop loss of 9,450 and target 9,200, 9,150, 9,100, 9,050.

Buy Nifty in 9,000-9,125 range with a stop loss of 8,900 and target 9,150, 9,200, 9,250.

Sell Bank Nifty in 19,550-19,750 range with a stop loss of 20,000 and target 19,300, 19,100, 19,000.  

Buy Bank Nifty in 18,950-19,050 range with a stop loss of 18,900 and target 19,250, 19,400, 19,500. 

Put-Call Ratio (PCR) is 1.23 & the Volatility Index (VIX) is 43.61.

Sectors:

Banks & NBFC: Sell on every rise. 

Pharma: Buy on Dips.

Stock of the Day:

Sell PEL Futures in 920-940 range: Stop loss 950 and target 885, 875, 850, 825.