Anil Singhvi’s Strategy May 8: Day support zone for Nifty is 9,125-9,200; Buy Hindalco with Stop Loss 116

Anil Singhvi’s Strategy May 8: Amid neutral global markets, foreign institutional investors (FIIs), domestic institutional investors (DIIs), sentiment and cautious futures & options (F&O) cues, the short-term trend of the Indian stock markets will be Neutral on Friday, May 8, 2020. 

At the stock markets, the Sensex at the Bombay Stock exchange declined 242 points, or 0.8 per cent, to close at 31,443 on Thursday, May 7, 2020. The Nifty at the National Stock Exchange lost 72 points, or 0.8 per cent, to end at 9,199. The rapid increase in new cases of COVID-19 in India in the last few days spoiled investors’ sentiment. Trading was volatile due to expiry of weekly index options.

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Zee Business's Managing Editor Anil Singhvi's Market Strategy for May 8:

Day support zone on Nifty is 9,125-9,200 and the higher range is 9,375-9,500.

Day Support Range on Bank Nifty is 18,950-19,250 and the higher range is 19,850-20,100.

The small day range for trading on Nifty is 9,200-9,300, while the medium and bigger ranges are 9,175-9,375 and 9,100-9,500 respectively.

The small day range for trading on Bank Nifty is 19,300-19,750, while the medium and bigger ranges are 19,200-19,850 and 19,000-20,050 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 9,300.

Bank Nifty intraday and closing stop loss 19,750.

For New Positions:

Buy Nifty with a stop loss of 9,100 and target 9,300, 9,375, 9,400, 9,450.

Sell Nifty in 9,375-9,500 range with a stop loss of 9,550 and target 9,300, 9,275, 9,250.

Buy Bank Nifty with a stop loss of 19,200 and target 19,750, 19,850, 20,050, 20,250.  

Sell Bank Nifty in 20,000-20,250 range with a stop loss of 20,400 and target 19,850, 19,750, 19,650.

Put-Call Ratio (PCR) is 1.49, Alert at a higher level, and the Volatility Index (VIX) down 3% at 39.93.

Stock of the Day:

Buy Hindalco: Stop loss 116 and target 120, 123. Strong Novelis results and Metals shares looking good.