NIFTY
Current 5,386 (May Fut: 5,382, June 5,386),
Target: NA
The 5,400 support seems to have broken and a target of 5,300 looks possible inside May 26. If you short May futures, keep a stop loss at 5,425. A bearspread of long May 5,400p (48) and long 5,300p (13) costs 35 with breakeven at 5,365 and a maximum return of 65. A long put butterfly of long 5,400p (48), two short 5,300p (2x13) and long 5,200p (3) costs 25, with a maximum return of 75.
BANK NIFTY
Current: 10,368 (May fut: 10,330, Jun 10,285)
Target: 10,225
Among individual banks, Axis Bank and Yes Bank offer a high-beta, high-correlation play on the BankNifty index. The BankNifty index itself has a target of 10,200-10,225, and a potential target of 10,100 by settlement. There’s a calendar arbitrage of long June future and short May future – the two contracts must align on May 26. Keep a stop at 10,425 and short May future. Add to the position between 10,250-10,275 and book partial profits at 10,225. Hold the residue for a target of 10,100.
ONGC
Current: Rs 267
Target: Rs 255
The stock is heading towards a 3-session target of between Rs 255-260. Keep a stop at Rs 273 and short. Add to the position between Rs 263-265 and reset the stop to Rs 268. Book partial profits at Rs 260, reset the stop loss to Rs 263, and hold the residue for a target of Rs 255. If Rs 273 is broken, there could be a bouncetill Rs 280.
COAL INDIA
Current: Rs 365
Target: Rs 385
The stock is likely to see a swing between Rs 360-390 and the trader could exploit that. Breakouts may go till Rs 355 or Rs 400 inside settlement. Keep a stop at Rs 360 and go long. Add to the position between Rs 373-376 and reset the stop to Rs 370. Book partial profits at Rs 385 levels and hold the residue for an upside breakout. If Rs 360 is broken, go short with an initial target of Rs 355 and a stop at Rs 364.
The target price and projected movements given above are in terms of the next one trading session