Nifty, ONGC, HDFC, Indian Hotels & TechM
Nifty
Current: 5,885,
Target: NA
A breakout from the current narrow range, should move at least 150-200 points (5,750/6,050) in either direction. Consider a strangle of long 5,700p (36) and long 6,100c (26) or a straddle of long 5,900c (95) and long 5,900p (96). Even a move till 5,800 or 6,000 will lead to profits in either case because one option premium will gain more sharply than the other will lose value.
ONGC
Current Price: Rs 292,
Target Price: Rs 303
The stock is oscillating between Rs 290 and Rs 305 and it’s slid towards the lower end of that zone. Keep a stop at Rs 290 and go long, assuming the range-trading will continue. Increase the position between Rs 296 and Rs 299 and book profits above Rs 303. If the Rs 290 stop is broken, go short with a stop at Rs 294 and a target of Rs 280.
HDFC
Current Price: Rs 716,
Target Price: Rs 735
HDFC is very interestingly poised at the very top of a current trading range of Rs 690-715. It could have an upside till Rs 735-740 if it breaks out. On the downside, there's a lot of support. Keep a stop at Rs 705 and go long. Add to the position between Rs 720-725. Start booking profits above Rs 735.
Indian Hotels
Current Price: Rs 92,
Target Price: Rs 99
The stock has made a breakout on high volumes. It has a lot of resistance around Rs 99-100 and it’s likely to find that tough to cross. It could also consolidate between Rs 88 and Rs 92 for a couple of sessions. Keep a stop at Rs 88 and go long with a five-session target of Rs 99-100. Increase the position between Rs 95 and Rs 97 and book profits above Rs 99.
TechM
Current Price: Rs 750,
Target Price: Rs 775
The stcok has seen reasonable volume expansion and its testing resistance near the current price. A breaskout could push it to Rs 776-780 On the downside, it could drop all the way to Rs 715. Keep a stop at Rs 735 and go long. Add to the position between Rs 760 and Rs 765 and book profits above Rs 775. If the Rs 735 stop is broken, a short may be taken with a target of Rs 715 and a stop at Rs 745.
The target price and projected movements given above are in terms of the next one trading session
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