BankNifty
Current level: 10,411
Target level: NA
The financial index shot up 2.5 per cent on across-the-board buying and registered a new high (at 10,436). The futures is trading at a significant discount to the underlying index at 10,365. However, this is not unusual. It could rise again during Tuesday's trading session. Target-setting is tough, given a new zone. Keep a trailing stop at 10,350 and go long. Move the stop up 50 points for every 50-point up-move.
Bharti Airtel
Current price: Rs 319
Target price: Rs 309
The stock will hit severe resistance at Rs 321 and react. It could drop till it finds support at Rs 306-309. Keep a stop at Rs 322 and go short. Add to the position between Rs 314 and Rs 316. Start booking profits below Rs 309 and clear the position at Rs 306. If the Rs 322 stop-loss is broken, reverse the position and go long with a target of Rs 335 and a stop at Rs 319.
Tata Steel
Current price: Rs 547
Target price: Rs 562
The stock made a small upside breakout and it tested resistance at Rs 550-552 on Monday before closing a little lower. The chart pattern suggests a potential to reach Rs 565. Keep a strop at Rs 545 and go long. Increase the position between Rs 552 and Rs 555 and reset the stop-loss to Rs 552, when the stock is above Rs 555. Start booking profits above Rs 562.
(Devangshu Datta — The target price and projected movements given above are in terms of the next one trading session unless otherwise stated)