NIFTY
Current: 5,907 (fut: 5,945);
Target: NA
The future premium should reduce in a downtrend. Use 6,000 (futures price) as a stop loss for short positions. If the index breaks support at 5,850-5,875, it could fall till 5,800. A bearspread of long 5,800c (63) and short 5,700c (39) costs 24. It could double in value if the index dips below 5,850.
BANK NIFTY
Current: 10,614 (fut: 10,715);
Target: 10,450
The futures premium may reduce sharply, given the downtrend. Keep a stop at 10,800 (futures price) and short. Add to the position between 10,575-10,625 and book profits or partial profits at 10,450. A five session target may be below 10,000 so a long 10,500 put (263) is also possible.
AMBUJA CEMENT
Current price: Rs 171;
Target price: Rs 163
A huge fall on extreme volumes following the Holcim merger. Support at Rs 162-163 will be tested again and may break. Keep a stop at Rs 175 and short. Add to the position between Rs 167 and Rs 169. Book profits at Rs 163. Or book partial profits and hold for a new target of Rs 158 with a stop loss at Rs 166.
The target prices and projected movements given above are in terms of the next one trading session, unless otherwise stated
