NIFTY
Current: 5,077 (Oct fut: 5,074)
Target: NA
The index ended weak yesterday after hitting resistance at 5,125-5,150. Short futures can be stop-lossed at 5,125. Long futures can be stop-lossed at 5,025. A bearspread of long 5,000p (67) and short 4,900p (40) costs 27 and pays a maximum 73. The previous recommendation of long 5,000p (67) and long 5,200c (39) costs 116 and would gain about 15-20 on a 100-point swing.
HCL TECH
Current: Rs 426.5,
Target: Rs 465
The stock is developing a promising uptrend. It has resistance between Rs 434 and Rs 437, which could be a minimum target. If it pushes past Rs 438, it may move all the way till Rs 465. Keep a stop at Rs 415 and go long. With a single-session outlook, book profits at Rs 435. Otherwise, add to the position between Rs 437 and Rs 440 and hold for five sessions with a target of Rs 465.
RELIANCE INDUSTRIES
Current: Rs 847,
Target: Rs 865
The stock is testing key resistance in the Rs 855-860 zone. A breakout above Rs 860 could push it till Rs 900. On the downside, if it drops below Rs 840, it will slide till it hits the next support at Rs 820-825. Keep a stop at Rs 840 and go long. Add to the position between Rs 860 and Rs 865. Book profits above Rs 890. If Rs 840 is broken, go short with a target of Rs 820.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
