NIFTY
Current: 4,800 (December Futures: 4,837);
Target: NA
There was a small recovery late in the session.
One session swing limits would be 4,650 and 4,950. Stop-loss short futures at 4,850 and long futures at 4,750. A bearspread of long 4,700p (57) and short 4,600p (35) costs 22 and could gain 20-25 if the markets drop 100 points.
BANK NIFTY
Current: 8,572 (December Futures: 8,635);
Target: 8,825
A recovery could be driven by speculation about looser RBI policy. Keep a stop at 8,525 and go long. Add to the position between 8,700 and 8,725. Start booking profits above 8,825. On the downside, if 8,525 is broken, the financial index could drop till 8,350.
TATA STEEL
Current price: Rs 393;
Target price: Rs 405
The stock closed fairly strong and it could rebound till around the Rs 405-407 levels today. Keep a stop at Rs 390 and go long. Add to the position between Rs 396 and Rs 400. Book profits above Rs 405. On the downside, if it drops below Rs 389, it could fall till Rs 375.
STERLITE INDUSTRIES
Current price: Rs 99;
Target price: Rs 96
A new low was followed by a sharp recovery on profit-booking. The intermediate trend still looks bearish. Keep a stop at Rs 101.5 and short. Add to the position between Rs 97 and Rs 98. Book profits below Rs 96.5. If it cross Rs 102 on the upside, the rebound could go till Rs 105.
LARSEN & TOUBRO
Current price: Rs 1,171;
Target price: Rs 1,150
The stock hit a new 52-week low. It's likely to test support at Rs 1,150 again, and if that breaks, it could fall further till around the Rs 1,135 mark. Keep a stop at Rs 1,185 and short. Add to the position between Rs 1,155 and Rs 1,165. Book partial profits at Rs 1,150 and hold the rest for a three-session target of Rs 1,135.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated