NIFTY
Current: 5,138 (August futures: 5,137);
Target: NA
The Nifty has unsuccessfully tested resistance at 5,175-5,225 in the past two sessions. It could slide till the 4,950 level over the next three-five sessions. A futures short sale should be stop lossed at 5,225. A bearspread of long 5,100p (105) and short 5,000p (72) may 15-25 if the Nifty drops 100 points. A strangle of long 5,300c (43) and long 5,000p (72) may gain 15-25 if the Nifty swings 100 points.
BANK NIFTY
Current: 10,339 (August fut: 10,344);
Target: 10,150
The Bank Nifty made a downside breakout when it fell below support at 10,450-10,500. It tested that support turned resistance yesterday and failed to hold above it. It should fall again till at least the 10,100-10,150 zone and maybe lower, till 10,000 in the next three sessions. Keep a stop at 10,400 and short. Add to the position between 10,250 and 10,300. Book profits at 10,150.
HINDALCO
Current: Rs 157
Target: NA
Hidnalco has made a sharp recovery from a recent 52-0week low of 143. It will run into serious resistance between 158-160 and it could see a slide back till 149-151. Keep a stop at 159 and go short. Add to the position between 1153-155 and reset the stop to 157. Book profits below 151.
HDFC
Current: Rs 685
Target: Rs 660
The stock has established a bearish pattern of declining tops and lows despite its sharp pullback from a low of 624. It has strong resistance between 690-700. A drop till 655-660 is likely in the next three sessions. Keep a stop at 695 and go short. Add to the positon between 672-682 and reset the stop to 685. Book profits below 660.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
