NIFTY
Current: 5,087 (February futures: 5,105);
Target: NA
The correction yesterday may continue. One session expectations range between 4,925 and 5,225. A simple bearspread of long 5,000p (70) and short 4,900p (44) costs 26 and it could pay a maximum of 74. A strangle of long 4,900p (44) and long 5,200c (68) costs 112 and could gain between 15 and 25 if there's a big swing.
BANK NIFTY
Current: 9,537 (February futures: 9,530);
Target: 9,375
The sector index looks weak. It could test support between 9,350 and 9,400 and if that is broken, it may fall till 9,200 inside three sessions. Keep a stop at 9,650 and go short. Add to the position between 9,450 and 9,475. Book profits, or partial profits, below 9,375. If you hold for a 9,200 target, reset the stop to 9,450.
BHEL
Current price: Rs 244;
Target price: Rs 233
There was a huge sell off in the PSU. The next support level is at Rs 232. On a bounce, the stock could recover till around Rs 255. Keep a stop at Rs 248 and go short. Add to the position between Rs 239 and Rs 241. Start booking profits below Rs 233.
AMBUJA CEMENT
Current price: Rs 161;
Target price: Rs 170
The stock could test its 52-week of Rs 165 in the next couple of sessions. If it crosses Rs 165, it could climb till Rs 170-172. Keep a stop at Rs 158 and go long. Add to the position between Rs 165 and Rs 167. Start booking profits above Rs 170.
SESA GOA
Current price: Rs 204;
Target price: Rs 188
The stock hit a high of Rs 219 before reacting on heavy selling pressure. It could slide till Rs 185-188 in the next two sessions before it finds reliable support. Be prepared for excess volatility. Keep a stop at Rs 211 and go short. Add to the position between Rs 195 and Rs 199 and book profits below Rs 188. If Rs 211 is broken consider a long position since it would test Rs 218-220.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
