NIFTY
Current: 5,161 (Aug futures: 5148);
Target: NA
Put-call ratio suggests a downside bias despite pullback. The index could swing between 4,950 and 5,350 in the next couple of sessions. A bearspread of long 5,100p (93) and short 5,000p (64) costs 29 and pays a maximum 71. It will gain around 10-15 if the Nifty drops 100 points. A strange of long 5,300c (53) and long 5,000p (64) is roughly zero-delta. This will gain 15-25 in value if the market swings 100 points.
AXIS BANK
Current: Rs 1,250
Target: NA
A downside breakout till Rs 1,180 has been followed by a pullback till resistance at Rs 1,250-1,270. The next move should be down. Keep a stop at Rs 1,270 and short with an initial three-session target of Rs 1,180. Add to the position between Rs 1,200-1,225 and reset the stop to Rs 1,250. Book profits at Rs 1,180 or book partial profits and hold with a 10-session target of Rs 1,125.
SAIL
Current: Rs 112.5
Target: Rs 116
The stock has initiated a recovery from a recent low of Rs 103. The move will run into resistance at Rs 116-118. Keep a stop at Rs 111 and go long. Add to the position between Rs 113.5-114.5 and reset the stop to Rs 112. Start booking profits above Rs 116. If Rs 111 is broken, the next support is at Rs 108.
The target price and projected movements given above are in terms of the next one trading session
