Nifty, Tata Motors, IDFC, DLF, Ranbaxy
NIFTY
Current: 5565 (May fut: 5563);
Target: NA
Range trading between 5500-5600 has led to a falling VIX. Breakouts in 5 sessions could move till 5400 or 5700. By settlement, we may see 5300 or 5800. A strangle of long May 5400p (30) and long 5700c (30) costs 60. This seems a good position — premiums are low. A butterfly of long 5600c(64), two short 5700c (2x30) and long 5800c(13) also looks good with a maximum loss of 17, a maximum gain of 83 at 5700, and breakevens at 5617, 5783.
TATA MOTORS
Current: Rs 1,212
Target: Rs 1,230
A mini-breakout could pull the stock up till Rs 1,230. However, it could also collpase till Rs 1,175-1,180. Keep a stop at Rs 1,200 and go long. Increase the position between Rs 1,216-1,222 and reset the stop till Rs 1,210. Book profits above Rs 1,230. If the Rs 1,200 stop is broken, consider going short with a target of Rs 1,175 and a stop loss at Rs 1,210.
IDFC
Current: Rs 133
Target: Rs 137
The stock is consolidating at a support around Rs 131-134 and it could be capable of a rally till the Rs 137-138 levels in the next two sessions. However, the long-term trend is down. Keep a stop at Rs 131 and go long. Add to the position between Rs 135-136 and reset the stop to Rs 133. Start booking profits above Rs 137.
DLF
Current: Rs 227
Target: Rs 233
The stock has bounced off reasonable support and it cleared a resistance at Rs 226, creating a pattern for higher highs. The target could be around Rs 233 in the next 3 sessions. Keep a stop at Rs 224 and go long. Add to the position between Rs 229-231 and reset the stop to 227. Book profits above Rs 232.
RANBAXY
Current: Rs 478
Target: Rs 495
The stock has swung down to a recent low of Rs 425 and then it made an upside breakout yesterday on big volumes. The chart pattern suggests a target of around Rs 495. Keep a stop at Rs 470 and go long. Increase the position between Rs 484-488 and reset the stop to Rs 480. Book profits above Rs 495.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
NIFTY
Current: 5565 (May fut: 5563);
Target: NA
Range trading between 5500-5600 has led to a falling VIX. Breakouts in 5 sessions could move till 5400 or 5700. By settlement, we may see 5300 or 5800. A strangle of long May 5400p (30) and long 5700c (30) costs 60. This seems a good position — premiums are low. A butterfly of long 5600c(64), two short 5700c (2x30) and long 5800c(13) also looks good with a maximum loss of 17, a maximum gain of 83 at 5700, and breakevens at 5617, 5783.
TATA MOTORS
Current: Rs 1,212
Target: Rs 1,230
A mini-breakout could pull the stock up till Rs 1,230. However, it could also collpase till Rs 1,175-1,180. Keep a stop at Rs 1,200 and go long. Increase the position between Rs 1,216-1,222 and reset the stop till Rs 1,210. Book profits above Rs 1,230. If the Rs 1,200 stop is broken, consider going short with a target of Rs 1,175 and a stop loss at Rs 1,210.
IDFC
Current: Rs 133
Target: Rs 137
The stock is consolidating at a support around Rs 131-134 and it could be capable of a rally till the Rs 137-138 levels in the next two sessions. However, the long-term trend is down. Keep a stop at Rs 131 and go long. Add to the position between Rs 135-136 and reset the stop to Rs 133. Start booking profits above Rs 137.
DLF
Current: Rs 227
Target: Rs 233
The stock has bounced off reasonable support and it cleared a resistance at Rs 226, creating a pattern for higher highs. The target could be around Rs 233 in the next 3 sessions. Keep a stop at Rs 224 and go long. Add to the position between Rs 229-231 and reset the stop to 227. Book profits above Rs 232.
RANBAXY
Current: Rs 478
Target: Rs 495
The stock has swung down to a recent low of Rs 425 and then it made an upside breakout yesterday on big volumes. The chart pattern suggests a target of around Rs 495. Keep a stop at Rs 470 and go long. Increase the position between Rs 484-488 and reset the stop to Rs 480. Book profits above Rs 495.
The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated
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