Nifty
Current: 5,766 (Dec futures: 5780);
Target: 5,650 (downside), 5,950 (upside)
The index saw a breakdown. If it slides below support at 5,740, it will test 5,650-5,700 and possibly, drop till 5,550. If it rebounds, it could hit 5,950-6,000. A single session position would be short December futures with a stop loss at 5,825 and a target of 5,675. 2) Reversed bearspread with short 6,000c (premium 33) and long 6,100c(16) for net inflow of 17. This would be held till settlement, or till 6,020 is hit. 3) Bearspread of long 5,700p (78) and short 5,600p (49) – net cost 29 and maximum possible return of 71.
BankNifty
Current: 11,116 (Dec future: 11185),
Target: 10,850
The financial index is in a big correction, dropping from a high of 13,300 (Nov 5) to a low of 11,040. It's broken two Fibonnaci retractions. A third is at 10,850. That’s a likely target predicted by other methods. The upside on rebounds could be till resistance is hit at 11,650. Keep a stop at 11,250 and short. Increase the position between 10,950 and 11,050 and reset the stop to 11,100. Book profits below 11,900.
TCS
Current Price: Rs 1,079,
Target Price: Rs 1,060
The stock rose from around 1,000 to 1,100 and it’s started correcting on low volumes. The last close was a first retraction point and we could expect a fall till first Fibonacci retraction level of 1,060-1,065 where there is also chart support. Keep a stop at 1,090 and go short. Increase the position between 1,068 and 1,070 and reset the stop to 1,073. Start booking profits below 1,062.
(The target price and projected movements given above are in terms of the next one trading session)