Friday, January 14, 2011

Today's picks BSe NSe Stock

Ambuja Cement, Nifty & Hindalco

Ambuja Cement
Current Price: Rs 132.5,
Target Price: Rs 137

The stock's found support after correcting off a recent high. It has the potential to move back till Rs 137 again. Keep a stop at Rs 129 and go long. Increase the position between Rs 134 and Rs 135 and reset the stop loss to Rs 132. Start booking profits above the 136.5 mark.

Nifty
Current: 5,752,
Target: NA

The index is moving between 5,700 and 5,900. Breakouts could lead to 5,500 or 6,100. One strategy: A long-short strangle set with long Jan 5,600p (premium 46) and long 5,900c (40) laid-off with short 5,500p (26) and a short 6,000c (20). This costs 40. Breakevens are 5,560; 5940. The maximum return of 60 is if 6,000 or 5,500 is hit at settlement. Another strategy: put butterfly with long 5,700p (76), two short 5,600p (2x46) and a long 5,500p (26). Cost: 10, breakeven at 5,690; 5,510. Maximum return of 90 at 5,600. Time perspective is three sessions.



Hindalco
Current Price: Rs 234,
Target Price: Rs 225

The stock's correcting off a 52-week high. It could slide till Rs 225 before it regains bullishness. Keep a stop at Rs 237 and short. Increase the short between Rs 228 and Rs 232 and reset the stop to Rs 234. Start booking profits below Rs 226.

       Related Articles

No comments:

Post a Comment