Friday, May 20, 2011

Todays Bse Nse Stock Picks

Nifty & L&T

Current: 5,428,
Target: NA

No material change today in the index. It remains range-bound, with a negative bias. A previously recommended long put butterfly of long May 5,400p (36), two short 5,300p (2x11.5) and long 52,00p (3) remains attractive. Maximum loss of 17, breakevens at 5,383 and 5,217. Maximum gain of 83 at 5,300. Another trading position is a long strangle of long 5,400p and long 5,500c (25). Maximum cost of 61, breakevens at 5,339 and 5,561, while potential returns are unlimited.

Current: Rs 1,595,
Target: 1,660

A sharp rise from what looks like fair support at 1,500-1,510 levels. There is resistance between 1,600 and 1,610. If that is broken, the scrip could go till 1,660 within three sessions. However, due to the sudden rise, there is a big downside risk. Keep a stop-loss at 1,570 and go long. Increase the position between 1,610 and 1,620 and reset the stop to 1,610. Book profits at 1660. If the 1,570 stop is broken, consider going short with a target of 1,535 and a stop-loss at 1,585.

The target price and projected movements are in terms of the next one trading session

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