Nifty
Current: 5,743 (Jan futures: 5,741, Feb futures: 5,760),
Target: NA
The Nifty is range trading between 5,700 and 5,800 with a strong support at 5,700. Breakouts within settlement could go to 5,600; 5,900. There's strong secondary support between 5,625 and 5,650 as well. Possibilities: Short Jan 5,800c (17), long Feb 5,800c (106), short Feb 5,900 (64) creating a Feb bullspread with net cost 25, and a max return of 75, if the market hits 5,900 by Feb 24. Long Jan 5,700p (22), short Jan 5,600p (5). Net cost is 17, with a max return of 83 if the market hits 5,600 by Jan 27.
BankNifty
Current: 11,151 (Jan futures 11,140, Feb futures: 11,175),
Target: 10,800
An apparently strong move in the financial index looked like short covering. There is massive resistance between 11,200 and 11,300. On the downside, one bearish session could push prices back to 11,850, and two bad sessions could push prices back till 10,700. Keep a stop at 11,225 and go short in the Jan future. Add to the position between 10,925 and 11,000. Start booking profits at 10,800. You may need to hold till settlement.
Wipro
Current Price: Rs 444,
Target Price: Rs 428
The stock dropped sharply on heavy volumes, breaking a support in the Rs 450-455 zone. It has a potential downside target of Rs 425-430 with some support at Rs 435. Keep a stop at Rs 448 and go short. If it drops past Rs 435, add to the position between Rs 432 and Rs 435 and reset the stop to Rs 439. Start booking profits below Rs 428.
(The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated)
