NIFTY
Current: 5,517 (Aug: 5,528)
Target: NA
The index continues to range-trade. Today it could fall till support at 5,450-5,475 or rise till resistance at 5,575. Breakouts beyond could go till 5,400 or 5,625. A short August future with a stop loss at 5,575 would exploit downturns. It may be combined to a long 5,700c (33) and short 5,800c (15) with a net cost of 18. The bullspread will gain around 10-15 if the index rises to 5,575. On the downside, it would reduce profits by around 5-10 if the index fell to 5,475.
TATA STEEL
Current: Rs 574
Target: Rs 590
An apparent breakdown was followed by a recovery - both up and down sessions had good volumes. If the stock cannot cross resistance at Rs 575-577, it will fall back till Rs 560. If it can cross Rs 577, it will rise till at least Rs 590. Keep a stop at Rs 567 and go long. Add to the position between Rs 576-580 and reset the stop to Rs 574. Book profits at Rs 590.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
