Today's picks

Nifty, DLF, ITC, Reliance Inds & YES Bank

NIFTY
Current: 5,395 (May: 5,394, June: 5,393),
Target: NA
A swing between 5,300 and 5,500 could come by settlement. A bearspread of long May 5,400p (36) and short 5,300p (7) costs 29 and pays a maximum 71 (breakeven 5,371). A butterfly of long 5,400p, two short 5,300p and long 5,200p (1) costs 23, (breakevens 5377, 5223) and has a payoff of 77 at 5,300. A long 5,400p and long 5,400c (29) straddle laid off with short 5,500c and short 5,300p costs 55 (breakevens 5,345-5,455) and offers chances of returns in both directions.

DLF
Current: Rs 219
Target: Rs 208
The stock could pull back till a minimum downside of Rs 212. It might drop till Rs 208 if there is serious selling pressure in the next two sessions. Keep a stop at Rs 223 and short. Add to the position between Rs 214 and Rs 216 and reset the stop to Rs 219. Book partial profits at Rs 212 and hold the residue with a stop at Rs 215 and a target of Rs 208.

 

ITC
Current: Rs 187 (May fut: Rs 187),
Target: Rs 194
The stock’s consolidating below resistance at Rs 190. It has support at Rs 185 and if it breaks Rs 190, the stock could test Rs 195-197. Keep a stop at Rs 184 and go long. Add to the position between Rs 190 and Rs 191 and reset the stop to Rs 188. Start booking profits at Rs 194.

RELIANCE INDS
Current: Rs 915 (May fut:Rs 916),
Target: Rs 890
The stock should test support at Rs 900-905 again and it could drop till the Rs 885-890 levels by May 26. Keep a stop at Rs 925 and go short. Add to the position between Rs 905 and Rs 910 and reset the stop to Rs 920. Book partial profits at Rs 900 and hold the residue with a target of Rs 890 and a stop at Rs 905.

YES BANK
Current: Rs 283 (May fut: Rs 283),
Target: Rs 271
The stock is a high-beta play on the Bank Nifty. It has key support at Rs 279 and resistance at Rs 285-287. If financials see another bout of selling, the stock could fall till Rs 271 by settlement. Keep a stop at Rs 287 and go short. Add to the position between Rs 277 and Rs 279 and reset the stop to Rs 281. Book profits below Rs 272.

The target price and projected movements given above are in terms of the next one trading session