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Nifty, DLF, Tata Steel, TCS & SBI

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Devangshu Datta New Delhi
Last Updated : Jan 20 2013 | 2:17 AM IST

NIFTY
Current: 5,275 (June: 5,276),
Target: NA
Strong resistance visible between 5,320-5,350. Potential downside till 5,200 or lower. Hold the previously recommended bearspread of long 5,200p (39) and short 5,100p (20) with a maximum cost of 19, maximum return of 81 and breakeven at 5,181. Also consider a put butterfly of long 5,300p (79), two short 5,200p (2x 39) and a long 5,100p (19). This has a cost of 20 and maximum return of 80 at 5,200. It will yield positive returns if the Nifty stays between breakevens of 5,120, 5,280.

DLF
Current: Rs 212
Target: Rs 206
The stock is likely to test the 52-week low of Rs 208 within the next three sessions. It could fall further till Rs 205-206. Keep a stop at Rs 215 and go short. Add to the position between Rs 209-211. Book partial profits at Rs 208 and hold the rest with a target of Rs 206.

TATA STEEL
Current: Rs 558
Target: Rs 540
The stock made a downside breakout on Monday, hitting a 52-week low at Rs 548 and a partial recovery on Tuesday on short-covering. It has a potential downside till between Rs 530-540 and Rs 540 is the target projection in the next three sessions. Keep a stop at Rs 565 and go short. Add to the position between Rs 545-550. Start booking profits at Rs 540.

TCS
Current: Rs 1,107
Target: Rs 1,065
The stock was hammered down to Rs 1,055-1,060 and recovered via short-covering on Tuesday. There’s strong resistance at Rs 1,125 and chances of further downside till Rs 1,060-1,065. Keep a stop at Rs 1130 and short. Add to the position between Rs 1,085-1,100. Start booking profits at Rs 1065. If Rs 1,130 is broken, it could climb till Rs 1,150.

SBI
Current: Rs 2,149
Target: Rs 2,100
The stock has established a new 52-week low at Rs 2,120 and seen a small recovery. The State Bank of India stock should test support at Rs 2,100-2,120 again and the chart target projection is around Rs 2,080-2,090. Keep a stop at Rs 2,185 and go short. Book partial profits at Rs 2,120 and hold the rest for a three-session target of Rs 2,100. If Rs 2,185 is broken, a bounce till Rs 2,220 is possible.

The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated

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First Published: Jun 22 2011 | 12:19 AM IST

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