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Nifty, BankNifty, Reliance Industries, Cipla & IDFC

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Devangshu Datta New Delhi
Last Updated : Jan 20 2013 | 10:13 PM IST

Nifty Current
Price:
5,482 (June Futures: 5,498.5), 
Target Price: NA

The Nifty stays range-bound. A long June 5,600c (38), long June 5,400p (44) coupled to a short 5,300p (23) and a short 5,700c (15) costs a net 46 with breakevens at 5,356, 5,644. In the event of a breakout, it will gain a maximum 56 each-way. What's attractive is that chances exist of making trading gains on both legs if the market continues to swing between 5,400-5,600.

BankNifty 
Current price:
10,717 (June futureS: 10,732) 
Target price: 10,300

There's key support at 10600. If that is broken, the BankNifty could fall till 10,300 or lower. Another rate hike could trigger a downside breakout. On the upside, there's resistance at 10,850-10,900 in case of a relief rally. Volatility is very likely, given RBI's impending review. Keep a stop at 10,850 and short. Add to the position between 10,500-10,550.

Reliance Industries 
Current price:
Rs 925, 
Target price: Rs 890

RIL is coming under selling pressure again. It's likely to test support between 880-900 within the next three sessions in this downmove. Keep a stop at 945 and go short Add to the position 905-915 and reset the stop to 925. Start booking profits at 890.

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Cipla 
Current price:
Rs 340, 
Target price: Rs 352

The stock seems to have developed a steady uptrend. It could have a target of between 350-355 in the next three sessions. Keep a stop at 335 and go long. Add to the position between 342-345 and reset the stop to 341. Start booking profits above 352.

IDFC 
Current price:
Rs 132 
Target price: Rs 127

The stock has seen some selling pressure, which could push it down till 126-127 in the next three sessions. Keep a stop at 135 and go short. Add to the position between 128-130 and reset the stop loss to 132. Start booking profits at 127.

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First Published: Jun 14 2011 | 12:38 AM IST

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