NIFTY
Current: 5,457 (Aug fut: 5,467),
Target: NA
The index breached support at 5,450 intra-day before a small recovery. It looks bearish. Three strategies come to mind. 1) Short August future with a stop loss at 5,500 and a 3-session target of 5,300.2). Bearspread with long 5,400p (72) and short 5,300p (42) - net cost of 30, max gain of 70. 3). Long 5,500c (82) and long 5,400p (72). This long strangle will gain 20-25 if the market swings 100 points either way.
AXIS BANK
Current: Rs 1,343
Target: Rs 1,300
The stock is correcting off a recent high of about Rs 1,367. It could fall till around the Rs 1,290-1,300 level with some support at around Rs 1,330. Keep a stop at Rs 1,355 and go short. Add to the position between Rs 1,315-1,330 and reset the stop to Rs 1,335. Book profits below Rs 1,300.
RELIANCE
Current: Rs 837
Target: Rs 815
The stock hit a new 52-week low of Rs 818 and recovered. It has a chart-based downside target of Rs 790-800 in the next 5 sessions. It should definitely re-test support at Rs 810-820. Keep a stop at Rs 855 and short. Add to the position between Rs 820-830 and reset the stop to Rs 835. Either book profits at Rs 815 or book partial profits and hold with a new target of Rs 795.
SAIL
Current: Rs 116
Target: Rs 107
A 52-week low for the PSU could mean a fall till around the Rs 105-107 level based on the recent chart pattern. Keep a stop at Rs 121 and go short. Add to the position between Rs 112-115 and reset the stop loss. Book profits at around Rs 107.
RELIANCE COMM
Current: Rs 99
Target: Rs 90
The stock is seeing a lot of selling which could push it back till the Rs 89-90 levels in the next three sessions. Keep a stop at Rs 102 and short. Add to the position between Rs 94-96 and reset the stop to Rs 99. Start booking profits at Rs 90.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
