Anil Singhvi’s Strategy May 7: Sell Banks & NBFCs on every rise; Buy Pharma on dips

Anil Singhvi’s Strategy May 7: Amid negative global markets, neutral foreign institutional investors (FIIs), domestic institutional investors (DIIs), futures & options (F&O) and cautious sentiment cues, the short-term trend of the Indian stock markets will be Neutral on Thursday, May 7, 2020.

Domestic equity benchmarks today gained around 0.7 per cent amid positive global markets on Wednesday, May 6, 2020. Weak domestic economic data and rising number of COVID-19 cases capped gains. Sensex at Bombay Stock Exchange ended 232 points, or 0.74 per cent, up at 31,686. Similarly, the Nifty at National Stock Exchange rose 65 points, or 0.71 per cent, to close at 9,271. Bank Nifty gained 423 points, or 2.19%, to close at 19,694.55. 

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

Day Support Zone on Nifty is 9,000-9,100 and the Higher Range is 9,350-9,450.

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 19,900-20,250. 

The small day range for trading on Nifty is 9,150-9,300, while the medium and bigger day ranges are 9,100-9,350 and 9,050-9,450 respectively.

The small day range for trading on Bank Nifty is 19,250-19,850, while the medium and bigger day ranges are 19,050-20,050 and 18,900-20,250 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 9,100.

Bank Nifty intraday and closing stop loss 19,200.

For Existing Short Positions:

Nifty intraday and closing stop loss 9,350.

Bank Nifty intraday and closing stop loss 19,900.

For New Positions:

Sell Nifty with a stop loss of 9,350 and target 9,200, 9,150, 9,100, 9,050.

Buy Nifty in 9,000-9,100 range with a stop loss of 8,900 and target 9,150, 9,200, 9,250.

Sell Bank Nifty with a stop loss of 19,900 and target 19,500, 19,250, 19,050, 18,950.

Buy Bank Nifty in 18,950-19,050 range with a stop loss of 18,850 and target 19,200, 19,450, 19,650. 

Put-Call Ratio (PCR) is 1.30 and the Volatility Index (VIX) down at 41.25.

Sectors:

Banks & NBFCs: Sell on every rise.

Pharma: Buy on Dips