Nifty
Current Level: 5,297,
Target Level: 5,400
The Nifty has resistance above 5,325. It also has support in the 5,275-5,300 zone where it ended yesterday. It may be set for another upmove with a target in the 5,400-range. Possible actions: Go long in Nifty July futures with a stop loss at 5,265 with a one-session perspective. Take a bullspread with a long 5,400c (premium 44) and short 5,500c (16) at a net cost of 28 if you can hold for 3 sessions.
Larsen & Toubro
Current Price: Rs 1,820,
Target Price: Rs 1,845
The stock’s made an upward move backed by reasonable volumes. The chart pattern suggests a rise till the 1,845-1,850 mark is possible. This could be tested on intra-day basis today. Keep a stop at 1,805 and go long. Increase the position between 1,830 and 1,835. Start taking profits beyond the 1,845-mark. On the downside, if 1,805 is broken, the next reliable support is at 1,785.
Bank Nifty
Current Level: 9,566,
Target Level: 9,650
The financial index has bounced after forming a bottom in the 9,300-zone about a week ago. It should rise again tomorrow with a possible close in the range of 9,650. However, it did open very high today (9,780) and then slid so there was a danger signal. Keep a stop at 9,500 and go long. Start covering above the 9,650-mark.
The target price and projected movements given above are in terms of the next one trading session unless otherwise stated
