Nifty
Current: 5,262,
Target: 5,100
The index is likely to test the February 2011 low of 5,177 today and, if that is broken, it could fall till 5,100. On the upside, bounces will hit resistance at 5,350. One possibility is to take a bearspread with long 5,100p (premium 106) and short 5,000p (77). This costs 29 and pays a maximum of 71 and it will gain on a downturn, even if it’s not struck. Another possibility is to sell the March future with a stop-loss at 5,300.
BankNifty
Current: 10,211
Target: 10,050
The financial index’s nearest reliable support is 10,000-10,050. If that’s broken, it could drop to 9,900. If it bounces from the current level, it could go back to 10,375-10,400. Keep a stop at 10,275 and short. Increase the position between 10,150 and 10,175. Book partial profits or clear the whole position at 10,050. If you hold for three sessions, target 9,900. If 10,300 is broken, go long with a target of 10,400.
JP Associates
Current: Rs 78.5,
Target: Rs 70
The stock has a downside till 70, where it would test the 52-week low. If that’s broken, it could drop further till around 55, but that’s a five session perspective. Go short with a stop-loss at 82 and a three-session target of 70. Raise the position between 75 and 77. Book profits below 71. If you wish to hold with a sub-70 target, shift the stop-loss to 74.
(The target price and projected movements given above are in terms of the next one trading session)
