Nifty
Current Price: 6,035,
Target Price: NA
The index is in an uptrend with a sequence of higher lows and higher highs. It has resistance between 6,050 and 6,150. Settlement and carryover trends are strong, which means the resistance is likely to be tested. But a slide till 5,900 is also on the cards so a swing of 120 points from current is possible. Actions 1) A long September future with a stop loss at 6,000. 2) A strangle of long 5900p (3) and a long 6200c (3) – either instrument could triple on the appropriate swing.
NTPC
Current Price: Rs 214.5,
Target Price: Rs 222
The stock has made a jump to a new three-month high on volume expansion. It has the potential to get to around Rs 220 and Rs 222. Keep a stop at Rs 209 and go long. Increase the position between Rs 217 and Rs 218.5. Above Rs 221, start booking profits. If you intend to hold a position through carryover, a target of Rs 230 may be possible in 10 sessions but the risks are high.
Lic Housing
Current Price: Rs 1,403.5,
Target Price: Rs 1,435
The stock has established what seems like a stable uptrend but it's also hit what were earlier projected targets. The strong volume action suggests that it could go further testing resistance in the Rs 1,435 zone. Keep a stop at Rs 1,390 and go long. Add to the position between Rs 1,410 and Rs 1,415. Above 1,435, start booking profits.
(The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated)
