NIFTY
Current: 4,840 (Sep fut: 4,868)
Target: NA
The index continued to slide. It's likely to test support at the 52-week low of 4,796. If it drops below 4,775, it could slide till 4,650 in the next 3 sessions. Upside resistance is marked at 4,925-4,950 and short futures positions can be stop-lossed in that zone. A zero-delta strangle of long 4,600p (71) and long 5,100c (57) will gain 20-25 in value if there's a 100-point move.
BANKNIFTY
Current: 9,177 (Sep fut: xxxx )
Target: 8,900
The financial index hit a new 52-week low at 9,135. It has a 3-session target of about 8,900 and it could fall lower. Go short with a stop-loss at 9,275. Increase the position between 9,000-9,075. Start booking profits below 8,950. If you go for a lower target, reset the stop-loss to 9,050. Among individual bank stocks, Axis Bank, SBI and YES Bank (not in the index) also look like good shorts.
TATA STEEL
Current: Rs 444
Target: Rs 425
The stock hit a new low and this breakout establishes a new chart projection. Tata Steel could have a target of Rs 420-425 in the next five sessions. Keep a stop at Rs 450 and go short. Increase the position between Rs 435-440. Book profits below Rs 425.
BHARTI AIRTEL
Current: Rs 402
Target: Rs 410
The stock made an upmove on short-covering. It has the potential to test resistance at Rs 410-412 and a move past Rs 412 could take it till Rs 420 in the next 5 sessions. Keep a stop at Rs 398 and go long. Add to the position between Rs 404-406. Either book profits at Rs 410 or book partial profits and hold the residue with a target of Rs 420.
POWERGRID
Current: Rs 100
Target: Rs 96
The stock made a downside breakout on the settlement. It should test support around the Rs 95-96 levels. Keep a stop at Rs 102 and go short. Add to the position between Rs 97-98. Start booking profits below Rs 96. If Rs 102 is broken, the stock will rise till Rs 105.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
