NIFTY
Current: 5,073 (Aug Future: 5,096);
Target: NA
Extreme volatility is on the cards. The index could open high or low and move in a 200-point range anywhere between 4,900-5,300. If you short the future, keep a stop at 5,170 and hedge with a long 5,400c (35). This position offers unlimited return below 5,060. Above 5,100, it will lose a maximum of 75. In practice, the long call will gain 15-20 premium if the Nifty hits the stop at 5,170.
TCS
Current: Rs 965
Target: Rs 900
The stock hit a new low at Rs 947 and then recovered till Rs 965. This is a clear downside breakout. Support at Rs 945-955 will be tested again and if that breaks, the stock could fall till Rs 875-900 in the next five sessions. Keep a stop at Rs 985 and short. Add to the position between Rs 935-945 and reset the stop to Rs 955. Book profits at Rs 900. If Rs 985 is broken, the next resistance is Rs 995-1,000.
MARUTI
Current: Rs 1,212
Target: Rs 1,245
The stock has seen a breakout from the Rs 1,150-1,220 range. It could move till around the Rs 1,250 level if it crosses resistance at Rs 1,225-1,230. Keep a stop at Rs 1,200 and go long. Add to the position between Rs 1,228-1,236 and reset the stop to Rs 1,220. Book profits above Rs 1,245. If Rs 1,200 is broken, it will drop to support at Rs 1,165-1,170 so reverse and go short, with a stop at Rs 1,210.
The target price and projected movements given above are in terms of the next one trading session
