NIFTY
Current: 5,500 (June futures: 5,516)
Target: NA
An at-the-money straddle of long 5,500c (85) and long 5,500p (70) cost 155 and it's a zero-delta positions where both options are equally sensitive to price change. If the Nifty moves plus or minus 100 points, the in-the-money option will gain 50-60 in premium value, while the out-of-money option will lose 20-30. Reversing the straddle, then, would offer a trading gain of 15-25 per cent.
HDFC
Current: Rs 648;
Target: Rs 620
The stock is testing support between Rs 640-650. If that is broken, it could fall till around the Rs 615-620 mark inside three sessions. Keep a stop at Rs 655 and go short. Add to the position between Rs 638-644 and reset the stop till Rs 650. Start booking booking profits below Rs 620.
HINDALCO
Current: Rs 177;
Target: Rs 170
Selling pressure seems to be intensifying and the stock could test support at Rs 160-165 in the next three to five sessions. Keep a stop at Rs 180 and go short. Increase the position between Rs 172-174 and reset the stop loss to Rs 176. Start booking profits at Rs 170.
TATA MOTORS
Current: Rs 984;
Target: Rs 965
The stock has made a downside breakout on reasonable volumes. It could have a target of around Rs 960-965 in the next three sessions. Keep a stop at Rs 1,005 and go short. Add to the position between Rs 970-980 and reset the stop to Rs 990. Start booking profits below Rs 965. if it breaks Rs 1,005, it could rise till around Rs 1,030.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
