NIFTY
Current: 5,680 (July future: 5,687);
Target: NA
The index has massive resistance between 5,700-5,750 and it has support down till 5,575. It could see a big swing session given settlement. Exploit the expiry factor and go with a long 5,600p (15) and long 5,700c (34). If either end is struck by settlement, the net value of the strangle will rise by 15-20. The long strangle can be offset with a short 5,500p (5) and short 5,700c (9) to reduce net cost to 35.
RELIANCE COMMUNICATIONS
Current: Rs 107
Target: Rs 112
The stock made a breakout on very high volumes. If the breakout is valid, the target should be about Rs 112. Keep a stop at Rs 103 and go long, Add to the position between Rs 108-110. Book profits above Rs 112. If the stock slides below Rs 103, it could fall till Rs 98 so, consider a short.
AXIS BANK
Current: Rs 1,337
Target: Rs 1,370
The stock is testing a key resistance. If it moves above Rs 1,345, it could rise till around Rs 1,365-1,375 levels and the volumes have been excellent. Keep a stop at Rs 1,320 and go long. Add to the position between Rs 1,345-1,355 and reset the stop to Rs 1,335. Book profits above Rs 1,370.
M&M
Current: Rs 748
Target: Rs 780
Volumes expansion was coupled to a price rise but the stock is hitting strong resistance between Rs 750-760. If it crosses Rs 760, it could rise till Rs 785. On the downside, if there's profit booking, there's support at Rs 730-735 but a fall till Rs 720 is possible. Keep a stop at Rs 735 and go long. Add to the position between Rs 755-765 and reset the stop to Rs 750. Book profits above Rs 780.
INFOSYS
Current: Rs 2,806
Target: Rs 2,735
The stock has strong resistance between Rs 2,820-2,850 and breakouts could take it till Rs 2,885. It has support at current levels and below at between Rs 2,725-2,750. Keep a stop at Rs 2,835 and go short. Add to the position between Rs 2,770-2,790 and reset the stop to Rs 2,810. Start booking profits at Rs 2,735.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
