Anil Singhvi’s Strategy May 15: Downside risk opens up if Nifty close below 9,200-mark; Buy Manappuram Futures with Stop Loss 122

Amid neutral global markets, futures & options (F&O), sentiment, positive domestic institutional investors (DIIs), and negative foreign institutional investors (FIIs) cues, the short-term trend of the Indian stock markets will be Neutral on Friday, May 15, 2020.

Domestic equity benchmarks on Thursday, May 14, 2020, plunged more than two and a half per cent amid weak global share markets. Sensex at Bombay Stock Exchange ended 885.72 points, or 2.77 per cent, down at 31,122.89. Similarly, the Nifty at National Stock Exchange declined 240.80 points, or 2.57 per cent, to close at 9,142.75. Bank Nifty lost 566.45 points, or 2.88 per cent, and settled at 19,068.50. 

A weak economic outlook by the US Fed and worries about the second wave of coronavirus infections weighed on domestic and global markets. Domestic investors shrugged off a number of measures announced by the Indian government to support MSMEs and NBFCs.

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

Downside risk opens up if Nifty and Bank Nifty close below 9,200 and 18,850 today.

Upside only if Nifty and Bank Nifty close above 9,400 and 19,750 today.

Day Support Zone on Nifty is 8,925-9,075 and Higher Range is 9,250-9,350.

Day Support Zone on Bank Nifty is 18,300-18,500, 18,850-19,050 and Higher Range is 19,500-19,750.

Small day range for trading on Nifty is 9,100-9,200, while the medium and bigger ranges are 9,050-9,250 and 9,000-9,300 respectively.

Small day range for trading on Bank Nifty is 18,950-19,300, while the medium and bigger ranges are 18,850-19,500 and 18,500-19,650 respectively.

For Existing Long Positions:

Nifty intraday and closing stop loss 9,100.

Bank Nifty intraday and closing stop loss 18,850.

For Existing Short Positions:

Nifty intraday and closing stop loss 9,400. 

Bank Nifty intraday and closing stop loss 19,750.

For New Positions:

Sell Nifty in 9,250-9,350 range with a stop loss of 9,400 and target 9,200, 9,150, 9,125.

Buy Nifty in 9,000-9,050 range with a stop loss of 8,900 and target 9,100, 9,150, 9,200.

Sell Bank Nifty in 19400-19650 range with a stop loss of 19,750 and target 19,100, 18,950, 18,850. 

Buy Bank Nifty in 18,850-18,950 range with a stop loss of 18,750 and target 19,050, 19,250, 19,350.

Put-Call Ratio (PCR) is 1.19 and the Volatility Index (VIX) down 2% 38.18.

F&O Update:

Out of Ban: BHEL

Already In Ban: Vodafone Idea

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Result Analysis

Buy Manappuram Futures: Stop loss 122 and target 130, 135. Strong 40% disbursement. 

Biocon Futures: Results weak, but short covering expected on gap down opening. Support range 320-325. Higher range 345-355