Ranbaxy
Current Price: Rs 926.5
Target Price: Rs 1,045
The stock has responded to a combination of excellent results and a 3:5 bonus announcement with a strong bull run. Trading volumes have risen sharply while the stock completed a bullish saucer formation. The normal target for this formation would be in the Rs 1,050-1,060 range. Keep a stop loss aroundRs 900, since this is a volatile stock moving against a generally bearish market.
GNFC
Current Price: Rs 36.95
Target Price: Rs 47
The stock has seen a pick up in volumes on speculation that the state government is seeking to divest some stake. It has shown an inverted head and shoulder(H&S) formation over the long term. Movement hereon will probably be only news-driven. But if there is a positive announcement, there is plenty of room for upward movement. The nominal target from an inverted H&S of this nature should beRs 47-48. Keep a stop loss at Rs 32.
Nalco
Current Price: Rs 119.3
Target Price: Rs 137
The stock saw its price surge on high volumes last Friday. This completes a bullish chart formation of a classic inverted head and shoulders. It should have a target of around Rs 135-140. There is likely to be another surge on Monday since the stock has generated abnormally high volumes. Keep a stop loss just below the formation neckline in the Rs 110-115 region, depending on personal comfort.
Hughes Software
Current Price: Rs 182.7
Target Price: Rs 160
The scrip has seen selling pressure ever since it announced poor results. It has fallen sharply since breaking an important support at Rs 210. The chances are that the scrip will test its all-time lows circa September 2001. The stock should find support at or around Rs 160. Keep a stop at Rs 205 if you decide to go short at any timeframe.
Satyam Computer
Current Price: Rs 237.9
Target price: Rs 210-255
Its results are due. But the stock is trading in a narrow Rs 230-240 band with dipping volumes. The 240 August call is available at Rs 10 while the 230 and 220 August puts are at around Rs 7.50 and Rs 4 respectively.
If the results cause a breakout in either direction, the trading range may expand to Rs 210-255. A combined long 220 put and long 240 call is possible. Or take a long Satyam August future (at 238) with a long 220 put.
(The target prices and projected movements given above are in terms of the next five trading sessions unless otherwise stated.)
