NIFTY
Current: 5,473 (June: 5,467)
Target: NA
There’s resistance at 5,500, support between 5,425-5,450. On the upside, breakouts could hit 5,550-5,600 inside 3 sessions while a drop back to 5,350 is also on the cards. A long future with a stop loss at 5,450, coupled to a bearspread of long 5,400p (79) and short 5,300p (49) is an two-way position. The maximum loss is 47 (bearspread =30; Future =17) between 5,400-5,450, breakevens are at 5,353, 5,503. Potential upside is unlimited, while maximum downside gain is 53.
BANK NIFTY
Current: 10,781 (June: 10,702)
Target: 10,900
The futures discount reflects nervousness. The chart pattern suggests an upside. There’s resistance at 10,825-10,850 and support at 10,650. On the upside, if 10,850 is broken, 10,925 is possible. Keep a stop at 10,650 and go long in June futures. Add to the position between 10,775-10,800 and reset the stop to 10,725. Book partial profits at 10,825 and hold the rest for a target of 10,900.
ONGC
Current: Rs 277.55
Target: Rs 290
The stock could be consolidating on support between Rs 275-280. If so, it has a 5-session target of Rs 290. Keep a stop at Rs 274 and go long. Add to the position between Rs 282-284. Start booking profits above Rs 289. If the Rs 275 stop is broken, there is a potential downside till Rs 265.
M&M
Current: Rs 663.05
Target: Rs 630
The stock nosedived on high volumes on Monday. It could have a downside till around the Rs 630 level. Keep a stop at Rs 675 and go short. Add to the position between Rs 650-660 and reset the stop loss to Rs 665. Start booking profits below Rs 632.
RANBAXY
Current: Rs 537
Target: Rs 555
The stock seems to have made an upside breakout. It will test resistance between Rs 540-545 and it could move up till around the Rs 555 mark. Keep a stop at Rs 530 and go long, Add to the position between Rs 543-548 and reset the stop to Rs 540. Book profits above Rs 555. On the downside, if Rs 530 is broken, consider going short with a target of Rs 515.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
