Nifty
Current level: 4,943
Target level: 4,800-5,100 (range trading)
The index is in an eight-week downtrend with resistance above 5,025 and support at 4,900. Breakouts may reach 4,800 or 5,100 in the next three sessions. The put-call ratio is bearish. Possible actions: 1) Short Nifty future, stop loss at 5,000 and a long May 5,000c( premium 21) — this gains on a drop. It may lose a maximum 78 at 5,000 but, in practice, the call gains in value. 2) Bearspread long May 4,900p (38) and short 4,800p (13) — costing net 25 and paying a maximum 75.
Reliance Capital
Current price: Rs 673
Target price: Rs 695
The stock has received a boost on high volumes. However, there is a lot of resistance above the Rs 695-700 mark as well as support at around Rs 665. The stock is liable to range-trade between Rs 665-695 and it could close anywhere within that zone. Keep a stop loss at Rs 665 and go long. Book profits above the Rs 690 level.
RNRL
Current price: Rs 54.6
Target price: Rs 59
The stock is likely to test the Rs 59-60 mark on Tuesday, though it may not be able to sustain prices at that level. Keep a stop at Rs 51 and go long. Reset the stop-loss to Rs 56.5 and increase the position above Rs 57. Start booking profits above Rs 59.
(The target price and projected movements given above are in terms of the next one trading session unless otherwise stated)
