NIFTY
Current: 5,526 (July fut:5,540);
Target: NA
The index may slide till 5,400 in the next three sessions. On the upside, it would hit resistance between 5,550-5,600. A short Nifty future with a stop loss at 5,575 and/or a long 5,700c (29) is one way to exploit a fall. A two-way trade is a strangle of long 5,400p (47) and a long 5,600c (58). If the market swings 100 points, the strangle should gain around 15-20 in net value.
BANK NIFTY
Current: 11,022 (July Fut: 11,059);
Target: 10,775
The financial index is just above key support between 10,950-11,050. If it falls below 11,920, it's likely to slide till 11,750. Keep a stop at 11,125 and go short. Add to the position between 10,875-10,925 and reset the stop to 10,975. Start booking profits below 10,775.
INFOSYS
Current: Rs 2,792
Target: Rs 2,665
A sharp downtrend has been visible in the past two sessions. The stock could fall till it hits support between Rs 2,650-2,670 in the next three sessions. The minimum downside is likely to be Rs 2,720-2,745. Keep a stop at Rs 2,820 and go short. Add to the position between Rs 2,700-2,725 and reset the stop-loss to Rs 2,750. Book profits at Rs 2,665.
TCS
Current: Rs 1,145.35
Target: Rs 1,080
The stock has a key support between Rs 1,130-1,140 and if it drops below that, it could slide till Rs 1,070-1,080. Recoveries go till the the Rs 1,175-1,180 mark. With a five-session timeframe, go short with a stop-loss at Rs 1,160 and a target of Rs 1,075. Add to the position between Rs 1,110-1,125 and reset the stop to Rs 1,145. Book profits at Rs 1,080.
TATA STEEL
Current: Rs 572
Target: Rs 585
The stock has had a big sell off and it's hit a key support level. If it drops below Rs 565, it will test the next support at Rs 555-560. On the upside, a bounce could pull it back till Rs 585. Keep a stop at Rs 565 and go long. Add to the position between Rs 576-579. Start booking profits at Rs 585. If Rs 565 is broken, consider switching to a short with a target of Rs 555.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
