RELIANCE INDUSTRIES
Current Price: Rs 1,079
Target Price: Rs 1,060
RIL is very interestingly poised. There’s massive resistance between Rs 1,080 and Rs 1,090 and it would require a lot of volume to break that. Volumes are high but they dropped on Monday and a lot of derivative open interest was extinguished. A technical reaction at Rs 1,055-1,060 is possible and not unlikely. Keep a stop at Rs 1,085 and go short. Increase the position below Rs 1,070 and reset the stop to Rs 1,070. Book profits below Rs 1,060.
TATA STEEL
Current Price: Rs 601.5
Target Price: Rs 615
This looks like a technical correction caused by profit-booking from short futures players after a sharp downtrend. There wasn’t much volume expansion in cash and falling open interest coincided with rising prices. The upside target would be between Rs 610 and Rs 620, and probably less than Rs 615. Keep a stop at Rs 595 and go long. Cover above Rs 615 or reset the stop loss to Rs 612.