Nifty
Current level: 5,320
Target level: 5,250
The index was range-bound between 5,300 and 5,350. In the next two sessions, it could go to either 5,250 or 5,400 on a breakout. The other possibility is that it will remain range-bound. A bearspread of long July 5,300p (115) and short July 5,400p (83) costs 32, pays a maximum 68 and seems under-priced. You could reverse it profitably if the market drops. If you think the market will rise, the most efficient action is to take a long July Nifty with a stop at 5,300.
Infosys Technologies
Current price: Rs 2,822
Target price: NA
The stock seems to have made an upwards breakout and it could have a target around Rs 2,850. Volumes have increased somewhat. Keep a stop at Rs 2,810 and go long. Increase the position beyond Rs 2,835. Start booking profits beyond Rs 2,845. Note that if Infy drops below Rs 2,805, it is quite likely to drop till around Rs 2,785. So, going short if the stop is broken is possible.
ITC
Current price: Rs 305.75
Target price: Rs 312
The stock has gained sharply and the rising price has come with high volumes and high delivery. It's difficult to project a target with the price-pattern, but the uptrend could have a few more sessions to play out. Tomorrow, the price could push past resistance at Rs 307-308 and hit Rs 313-315. Keep a stop at Rs 300 and go long. Increase the position beyond Rs 307. Book profits above Rs 312.
(The target price and projected movements given above are in terms of the next one trading session unless otherwise stated)
