Nifty, Bank Nifty, ONGC, HDFC & Mundra
NIFTY
Current: 5,438.95 (May fut: 5,450);
Target: NA
The index made a downside breakout, creating lower lows that suggest a weak intermediate trend. The target by settlement should be 5,300-5,325. There’s an interim support between 5,400 and 5,425. There’s resistance between 5,450 and 5,475, and another resistance at 5,500-5,525. A bearspread of long 5,400p (41) and short 5,300p (16) costs 25. Breakeven is at 5,375 and it gives a maximum return of 75 at 5,300. If you short the future instead, keep a stop loss at 5,500.
BANK NIFTY
Current: 10,669 (May fut 10,654);
Target: 10,400 (May 20) or 10,250 (May 26)
Monday’s target of 10,650 was hit and exceeded with a low of 10,587 on Tuesday. It may be worth holding the short May futures since the trend is clearly negative. The chart pattern suggests a target of 10,150-10,250 possible by settlement. Keep a stop at 10,800 and go short with a 3-session target of 10,400. If that is hit, you can book profits. Or else, reset the stop to 10,550 and stay short with a target of 10,250 by settlement.
ONGC
Current: Rs 277
Target: Rs 265
The stock has made a downside breakout and it now has a 3-session target of Rs 265. It could drop further if selling pressure intensifies. There’s some support at Rs 275, and resistance above Rs 280 and again at Rs 285. Keep a stop at Rs 281 and short. Add to the position between Rs 272 andRs 275 and reset the stop to Rs 278. Book profits below Rs 265.
HDFC
Current: Rs 632
Target: Rs 610
The stock is under selling pressure but its holding at support between Rs 625 and Rs 635. If it falls below Rs 625, it could drop till Rs 610-615 in a 3-session timeframe. By settlement, it could test Rs 580, if it breaks 610. Keep a stop at Rs 638 and short. If it’s a one-session position, book profits or partial profits at Rs 625. If you can hold for 3-sessions or longer, increase the position between Rs 620 and Rs 625 and reset the stop to Rs 630. Book profits or partial profits at Rs 610
MUNDRA
Current: Rs 145
Target: Rs 155
The stock could see some profit booking on Wednesday after a sharp climb. But it has good support at Rs 139-141 and it should test resistance between Rs 155 and Rs 158 in the next 3 sessions. Keep a stop at Rs 140 and go long. Add to the position between Rs 147 and Rs 149 and reset the stop loss to Rs 144. Start booking profits above Rs 154.
The target price and projected movements given above are in terms of the next one trading session
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