NIFTY
Current: 5,420,
Target: NA
The index support at 5,400 held yesterday. On the upside, there is resistance around 5,475-5,525. Stop loss at 5,475 if you sell the May future. On the downside, if 5,400 breaks, the initial target is 5,350. The settlement (five-session) target is 5,300. A bearspread of long 5,400p (43) and short 5,300p (15) looks good. So does a long put butterfly of long 5,400p (43), two short 5,300p (2x15) and long 5,200p (4). The butterfly has maximum loss of 17, breakevens at 5,383, 5,217 and maximum return of 83 at 5,300.
SAIL
Current: Rs 143.5
Target: NA
The stock hit a new 52-week low on heavy volumes yesterday. The patterns shows clear bearishness, with the price forming a falling trendline at minus 41 degrees. But it is impossible to set a target due to lack of history. Keep a stop at 148 and short with a tentative target of 135. Use a sliding stop-loss. For every five-point fall, move the stop down five points.
TATA MOTORS
Current price: Rs 1,149,
Target price: Rs 1,070
The stock has key support at 1,135-1,145. If that holds, it will bounce back to 1,190-1,200. If it breaks, it could slide to 1,060-1,070. Keep a stop at 1,165 and short in a three-session timeframe. Add to the position between 1,115 and 1,135. Reset the stop loss to 1,145. Start booking profits below 1070. If the 1,165 stop is broken, go long with a target of 1,190 and a stop loss at 1,145.
SBI
Current price: Rs 2,356,
Target price: Rs 2,200
The stock has seen a big downside breakout, reinforced by high volumes. It has a chart pattern target of around 2,200 and there is a lot of support at that point, close to the 52-week low. Keep a stop at 2,400, where it could bounce on short-covering and go short. Add to the position between 2,300 and 2,330 and reset the stop to 2,365. Start booking profits at 2,200.
RELIANCE INDS
Current price: Rs 902
Target price: Rs 880
The stock is seeing heavy selling and it could test its 52-week low at around 880. If it falls below 880, it could drop till around the 840. On the upside, there is resistance at 925 and again at 940-950. Keep a stop at 910 and short. Add to the position between 890 and 895 and reset the stop to 902. Start booking profits at below 882. If the stock closes below 880, consider a target of 850.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated