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Today's picks

Nifty, Bank Nifty, L&T & Bajaj Auto

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Devangshu Datta New Delhi
Last Updated : Jan 20 2013 | 6:29 AM IST

NIFTY
Current: 5,825 (futures: 5,871)
Target: NA
The index hit a new high with the futures at 50 points premium. A big session could move it till 5,900 or back till 5,750. Stop loss shorts at 5,900 (futures price) and stop loss long positions at 5,825 (futures price). A bullspread of long 5,900c (74) and short 6,000c (39) costs 35 and it could gain 15-20 if 5,900 is struck.

BANK NIFTY
Current price: 11,993 (fut: 12,090)
Target price: 12,350 (fut: 12,450)
The financial index has just hit a 52-week high and the futures are trading at around 100 points premium. Difficult to set a target but a run till 12,350-12,400 (fut: 12450-12,500) is possible in the next three sessions. Keep a stop at 11,900 (futures price) and go long. Book profits above 12,450.

L&T
Current price: Rs 1,663
Target price: Rs 1,705
A big jump on high volumes. There's resistance at Rs 1,680-1,690 which is likely to be tested and a move past Rs 1,690 would mean a target of Rs 1,705-1,720. A reaction should find support at Rs 1,610-1,620. Keep a stop at Rs 1,650 and go long. Add to the position at Rs 1,670-1,685. Book profits above Rs 1,705.

BAJAJ AUTO
Current price: Rs 1,950
Target price: Rs 2,025
The stock hit a new 52-week high at Rs 1,977-1,978 on high volumes. It should move up till around the Rs 2,025-2,050 mark in the next three sessions. However, the nearest reliable support is at Rs 1,860-1,870. So, there is a big downside. Keep a stop at Rs 1,920 and go long. Add to the position between Rs 1,975 and Rs 1,995. Book profits above Rs 2,025.

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: Nov 30 2012 | 12:34 AM IST

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