NIFTY
Current: 5,.412 (June fut: 5,396)
Target: NA
The index hit resistance at 5,425 and it could slide back to hit 5,300-5,350 in the next 3 sessions. A long put butterfly with long June 5,400p (121), two short 5,300p (2x81) and long 5,200p (53) costs 12 and could pay a max 88 at 5,300 with breakevens at 5,388 and 5,212. On the upside, a simple long June 5,500c (69) and short 5,600c (39) has a decent risk: reward ratio.
BANK NIFTY
Current: 10,468 (June: 10,385),
Target: 10,250
The discount on the June future suggests the financial index could fall sharply. Chart patterns indicate a downside till 10,225-10,250. Keep a stop at 10,500 and short the June future. Add to the position between 10,275 and 10,325, and reset the stop to 10,375. Start booking profits below 10,250.
TCS
Current: Rs 1,136
Target: Rs 1,115
The stock seems to be stuck range-trading Rs 1,115-1,145 and it bounced off the top of the trading range yesterday. Potential breakouts could be Rs 1,080 or Rs 1,180. TCS could test the bottom of the zone in the next 3 sessions. Keep a stop at Rs 1,150 and go short. Add to the position between Rs 1,125 and Rs 1,130, and reset the stop to Rs 1,135. Either book profits at Rs 1,115 or book partial profits and hold, hoping for a breakout. If Rs 1,150 is broken, go long.
RELIANCE INDS
Current: Rs 934
Target: Rs 910
The stock bounced on short-covering but it’s due to hit resistance between Rs 937 and Rs 942. On the downside, it could fall back till Rs 905-910 inside 3 sessions with a little support coming at Rs 920. Keep a stop at Rs 940 and go short . Add to the position between Rs 920 and Rs 925, and reset the stop to Rs 931. Start booking profits below Rs 910. If Rs 962 is broken, RIL could jump till Rs 960.
NTPC
Current: Rs 171
Target: Rs 176
NTPC has bounced off a decent support at Rs 165-166 and it could rise till around the Rs 177 levels before it hits severe resistance. Keep a stop at Rs 168 and go long. Add to the position between Rs 173-175 and reset the stop till Rs 172. Book profits above 176.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated