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Today's picks

Nifty, DLF, Reliance Capital, Sterlite Industries & TCS

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Devangshu Datta New Delhi
Last Updated : Jan 20 2013 | 11:53 PM IST

NIFTY
Current: 5,036 (Aug fut: 5,040); 
Target: NA The index looks bearish and likely to test support at 4,950. If that breaks, it could fall till 4,800. On the upside, there's resistance at 5,125 and again at 5,175. If you sell the future, keep a stop loss some where between 5,150-5,200. Alternative: A long strangle at long 4,900p (43) and long 5,200c (25). If the market swings 100-150 points in any direction, the position gains 20-30 in value.

DLF
Current: Rs 189
Target: Rs 180
The stock saw massive selling. It will test the support at Rs 185 and it could fall till Rs 179-180 in the next three sessions. Keep a stop at Rs 193 and short. Add to the position between Rs 183-185 and reset the stop to Rs 187. Book profits below Rs 180.

RELIANCE CAPITAL
Current: Rs 411
Target: Rs 390
The stock has a target projection of Rs 385-390, given its recent downside breakout. It could drop lower and it' likely to show extreme volatility. Keep a stop at Rs 425 and go short. Add to the position between Rs 400-406 and reset the stop loss to Rs 410. Book profits below Rs 390.

STERLITE INDUSTRIES
Current: Rs 132
Target: Rs 143
The stock seems to be finding support at Rs 130. If that breaks, it could fall till Rs 124. On the upside, short-covering could take it back till Rs 142-145. Keep a stop at 130 and go long., Add to the position between Rs 137-139 and reset the stop to Rs 134. Book profits above Rs 143. Reverse and go short if Rs 130 is broken, with a stop at Rs 132.

TCS
Current: Rs 974
Target: Rs 1,005
The stock seems to have temporary support between Rs 945-955 and it could make a partial recovery till around Rs 1,010. If Rs 945 is broken, it will fall till Rs 915-920. Keep a stop at Rs 955 and go long. Add to the position between Rs 985-995 and reset the stop to Rs 980. Book profits above Rs 1,005. Reverse and short if Rs 945 is broken, with a stop loss at Rs 960.

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: Aug 17 2011 | 12:52 AM IST

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