NIFTY
Current: 4,947 (Sep fut: 4,942)
Target: NA
The index seems to have turned sharply bearish and a downside till 4,800 in the next three sessions seems likely. But highly volatile trading could also mean a snap back till the 5,100 level. Short futures can be stop-lossed at 5,025, or alternatively hedged with a long 5,200c (29). A bearspread of long 4,900p (113) and short 4,800p (83) costs 30 and pays a maximum 70. The bearspread will gain around 10-15 in value on a 50 point drop.
BANKNIFTY
Current: 9,395 (Sep future: 9,390),
Target: 9,050
The financial index has key support between 9,325-9,350, if that is broken, it could fall till 9,050 in a 3-session timeframe. Keep a stop at 9,550 and go short. Add to the position between 9,250-9,300. Start booking profits between 9,025-9,075.
TCS
Current: Rs 986
Target: Rs 940
The stock has seen a sharp downturn after registering lower highs. On the chart pattern, it has a minimum downside till Rs 970 and a likely 3-session target of Rs 940. Keep a stop at Rs 1,000 and go short. Add to the position between Rs 972-978. Book partial profits below Rs 970 and hold the residue for a target of Rs 940.
RELIANCE INDUSTRIES
Current: Rs 806
Target: Rs 775
The stock is seeing a retraction from a recent high of Rs 859 and if it drops below support at Rs 795-800, it could fall till Rs 770-775. Keep a stop at Rs 815 and go short. Add to the position between Rs 790-795. Start booking profits below Rs 775.
HIND UNILEVER
Current: Rs 346
Target: Rs 355
The stock bucked the market trend by moving up yesterday and hitting a new 52-week high. It should test resistance at Rs 348 today and it could have a potential target of Rs 355-356 in the next 3 sessions. Keep a stop at 341 and go long. Add to the position between Rs 349-352. Book profits above Rs 355 or reset the stop to Rs 353 to lock in profits.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
