NIFTY
Current: 5,118 (Fut: 5,133)
Target: NA
The index continues to look bearish. It could test support between 5,000-5,050 today and it has a possible target of 4,800 in the next five sessions. Upside resistance starts at 5,170-5,200. A long strangle of long 5,300c (52) and long 4,900p (61) costs 113 and it can be laid off with a short 5,400c (28) and short 4,800p (41) for a net cost of 44. Breakevens at 4,866, 5,344 and a maximum one-sided payoff of 56.
BHARTI AIRTEL
Current: Rs 408
Target: Rs 395
The stock is likely to retrace till around Rs 390-395 where it has good support. Keep a stop at Rs 415 and go short. Add to the position between Rs 400-404 and reset the stop to Rs 408. Book partial profits at Rs 395 and hold the rest for a three session target of Rs 390. If Rs 415 is broken, a rise till Rs 425 is possible.
TATA STEEL
Current: Rs 509
Target: Rs 485
The stock is likely to test support between Rs 480-490, and establish a new 52-week low in the next five sessions. Keep a stop at Rs 520 and short. Add to the position between Rs 495-503 and reset the stop to Rs 510. Book partial profits at Rs 490 and hold the rest for a target of Rs 480-485.
ICICI BANK
Current: Rs 950
Target: Rs 900
The support at Rs 935 is critical. If that is broken, the stock could fall till Rs 890-900. Keep a stop at Rs 975 and go short. Add to the position between Rs 925-935 and reset the stop to Rs 945. Start booking profits below Rs 900. If Rs 975 is broken, a bounce till Rs 1,000-1,005 is possible.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
