NIFTY
Current: 4,772 (Oct fut: 4,779),
Target: NA
Support at 4725 held on the downmove yesterday but, a breakout below 4700 would imply a move till 4400. On the upside, a bounce and recovery will be limited to 4900. Short futures can be stop lossed at 4850 and long futures at 4725. A bearspread of long 4700p (134) and short 4600p (101) costs net 33 and yield maximum returns of 67. It will gain 15-20 if the 4700p is struck.
BANK NIFTY
Current: 8,913 (Oct fut: 8,885),
Target: 8,675
The financial index dropped below what seems like a key support zone between 9025-9100. It has a potential downside till the 8650-8700 level. Keep a stop at 9050 and short. Add to the position between 8750 and 8800. Start booking profits below 8700.
STERLITE INDA
Current: Rs 105
Target: Rs 95
The stock has hit successive 52-week lows. Chart projections suggest it could fall till 94-95 in the next five sessions though the error factor would be high given that this is a new zone. Keep a trailing stop at 111 and short. Move the stop down 2 units for every 3 unit fall. Add to the position between 100-103. Book profits below 95.
BHARTI AIRTEL
Current: Rs 370
Target: Rs 361 The stock is in a downtrend which projects to testing support at 360-362 in the next two or three sessions. Keep a stop at 376 and short. Add to the position between 365-368. Start booking profits below 362.
The target price and projected movements given above are in terms of the next one trading session