Anil Singhvi’s Strategy May 5: Day Support Range on Nifty is 9,150-9,250 & Bank Nifty is 19,400-19,700; Sell United Spirits Futures with Stop Loss 546

Anil Singhvi’s Strategy May 5: 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 Tuesday, May 5, 2020.

Domestic equity benchmarks crashed around six per cent Monday, May 4, 2020, amid a plunge in global markets. Sensex at Bombay Stock Exchange ended 2002.27 points, or 5.94 per cent, lower at 31,715.35. Similarly, the Nifty at National Stock Exchange lost 566.40 points, or 5.74 per cent, to close at 9,293.50. Bank Nifty lost 1,790.75 points, or 8.32 per cent, to close at 19,743.75.

Global cues were weak following the latest flare-up in US-China tensions. Extension of the nationwide lock-down in India for next two-weeks also weighed on the investor sentiment. The nationwide lockdown, put in to contain the Covid-19 outbreak, was set to end on 3 May, but now it has been pushed to May 17, 2020.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 5:

Day support range on Nifty is 9,150-9,250, while the selling zone is 9,500-9,600.

Day support zone on Bank Nifty is 19,400-19,700, while selling zone is 20,250-20,500.

Small day range for trading on Nifty is 9,250-9,375, while medium and bigger ranges are 9,200-9,525 and 9,150-9,600 respectively.

Small day range for trading on Bank Nifty is 19,650-20,050; while medium and bigger ranges are 19,500-20,250 and 19,400-20,500 respectively.

Put-Call Ratio (PCR) comfortable at 1.35, Down from 1.89 but the Volatility Index (VIX) is alarming up 29% at 43.74

For Existing Long Positions:

Nifty intraday and closing stop loss 9,250.

Bank Nifty intraday and closing stop loss 19,400.

For Existing Short Positions:

Nifty intraday stop loss 9,400 and closing stop loss 9,550.

Bank Nifty intraday and closing stop loss 20,100.

For New Positions:

Buy Nifty with stop loss of 9,250 and target 9,375, 9,500, 9,550, 9,600.

Sell Nifty in 9,500-9,600 range with stop loss of 9,750 and target 9,400, 9,325, 9,275.

Buy Bank Nifty with stop loss of 19,600 ad target 20,050, 20,250, 20,350, 20,450.

Sell Bank Nifty in 20,250-20,500 range with stop loss of 20,700 and target 20,100, 19,900, 19,750.

Stock of the Day:

Sell United Spirits Futures: Stop loss 546 and target 525, 510. Delhi government imposed 70% Special Corona Fees.