NIFTY
Current: 4,905 (Aug fut:4,910)
Target: NA
The index has resistance at 4,925-4,950. Support is at 4,850 and 4,800. Moves outside 4,800-4,950 could hit 5,000 or 4,700. Range trading of 4,800-4,925 is quite likely. Short futures can be stop lossed at 4,950-4,975. A put butterfly of long August 4,900p (47), two short 4,800p (2x19) and long 4,700p (8) costs 17 and profits between 4,717-4,883. A strangle of long 4,800p (19) and long 5,000c (22) will gain 15-20 on a 100-point swing.
BANK NIFTY
Current: 9,407 (Aug fut: 9,414)
Target: 9,225
The financial index continues to show a continuing downtrend. Keep a stop loss at 9,500 and short. Add to the position between 9,300-9,350. Booking profits below 9,225. If it falls below 9,200, the next stop may be 9,100 - watch for that. If it breaks 9,500, and rises beyond 9,550, it could jump 9,700. So be prepared to reverse and go long if it climbs past 9,550.
TATA MOTORS
Current: Rs 737
Target: Rs 705
There's a lot of resistance between Rs 750-760. If that is crossed, Tata Motors could climb till Rs 785. On the downside, any fall below Rs 730 could lead to support at Rs 700 being tested. Keep a stop at Rs 755 and short with a target of Rs 705. Add to the position between Rs 725-732 and reset the stop to Rs 740. Book profits at Rs 705.
SAIL
Current: Rs 111
Target: Rs 103.5
A sharp recovery off the 52-week low of Rs 101. There's resistance at Rs 112-114. If that's crossed, Sail could rise till Rs 120. If support at Rs 108 breaks, it could drop till Rs 104. Set a stop at Rs 113 and short with a 3-session perspective. Add to the position between Rs 106-108. Book profits between Rs 103-104. If it rises above Rs 114, set a stop loss at Rs 112 and go long with a target of Rs 120.
JP ASSOCIATES
Current: Rs 62.70
Target: Rs 57
The stock made a recovery on short-covering. This will run into resistance between Rs 64-65 and the next move is likely to be down again. Short with a stop loss at Rs 64 and a 3-session target of Rs 57. Increase the position between Rs 58.5-59.5 and reset the stop to Rs 60.5. Book profits at Rs 57.
