Reliance Communications
Current Price: Rs 94.65,
Target Price: Rs 90
The stock plunged on massive volumes from 110. The chart pattern predicts a move till support at 90 and maybe, till 85. Keep a stop at 97 and short. Increase the position between 92-93. Start booking profits at 90 unless you can hold a 3-session position with a target of 85. If the 97 stop is broken, the stock could rebound to 100.
Bank Nifty
Current Price: 10116 (Feb futures: 10131),
Target Price: 9950 (Feb futures target)
The financial index tested support at 10025-10o50 before making a small recovery. It is likely to test that zone again and probably break it to land at 9950 or lower. Keep a stop at 10200 and short. Increase the position between 9975-10025. Start booking profits below 9950.
Hindalco
Current Price: Rs 219,
Target Price: Rs 205
There was a breakout below support at 220 on high volumes. The downside target could now be 205. Keep a stop at 225 and go short. Increase the position between 214-217. Start booking profits below 207. If the 225 stop is broken, there could be a rebound till 232 on short-covering so it may be worth reversing and taking a long position.
(The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated)
