NIFTY
Current: 5,575 (July fut: 5,577)
Target: NA
Another big swing session within settlement could take the index to either 5,425 or 5,700. The short-term trend seems bearish. A strangle of long 5,600c (22) and long 5,500p (9) costs 31, with breakevens at 5,469, 5,631. A put butterfly of long 5,600p (43) , two short 5,500p (2x9) and long 5,400p (3) costs 28, with breakevens at 5,572, 5,428, and a maximum profit of 72 at 5,500.
BANK NIFTY
Current: 11,068 (July fut: 11,104)
Target: 10,850
The impact of the 50 bps rate hike has been bearish. The financial index could fall till around the 10,800-10,850 level within the settlement. On the upside, there's resistance at around 11,200. Keep a stop at 11,150 and short the July future. Add to the position between 10,950-11,000 and reset the stop to 11,050. Start booking profits below 10,850.
IDFC
Current: Rs 135
Target: Rs 127
The stock has seen strong selling pressure like every other rate sensitive. It could slide till it hits support in the Rs 126-127 zone. Keep a stop at Rs 138 and go long. Add to the position between Rs 130-133 and reset the stop to Rs 135. Start booking profits at Rs 127.
ITC
Current: Rs 200
Target: Rs 194
The stock is correcting after a recent surge till Rs 210 and it could see some more profit-booking during settlement. Keep a stop at Rs 203 and go short with a target of Rs 194. Add to the position between Rs 197-199 and reset the stop to Rs 200. Book profits at Rs 194. If Rs 203 is broken, the bounce could go all the way back till Rs 209.
STERLITE INDS
Current: Rs 168
Target: Rs 161
The stock could get pushed down to around the Rs 159-161 zone if the selling persists in the last two sessions of July. Keep a stop at Rs 172 and go long. Add to the position between Rs 164-167 and reset the stop to Rs 169. Start booking profits below Rs 161.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated