Nifty
Current: 4,944 (futures: 4,949); Target: NA
Yesterday’s collapse could presage a new downtrend. One-session expectations would be 4,800 and 5,050. Stop-loss long futures and short futures at 4,875 and 5,025, respectively. Book profits on the previously recommended strangle of long 4900p(108) and long 5200c (37). A bearspread of long 4800p (76) and short 4700p (53) costs 23, with a maximum return of 77. It would gain 15-25 if the market falls another 50-75 points.
Bank Nifty
Current: 8,916; (futures: 8,923); Target: 8,675
The financial index saw heavy selling, which may establish a downtrend. If support at 8,800 is broken, the Bank Nifty could fall till 8,650. Keep a stop at 8,025 and short.
Add to the position between 8,750 and 8,800.
Book profits below 8,675. If 9,025 is broken on a rebound, be prepared for a bounceback till 9,150.
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Hindalco
Current: Rs 130.5; Target: Rs 136
A pullback is possible till resistance at 136. Keep a stop at 128.5 and go long. Add to the position between 132-134. Book profits above 136. If the 128.5 stop-loss is broken, the stock could drop till 124. So, consider reversing and going short.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated