Nifty, HDFC, Hindalco & Tata Motors
NIFTY
Current: 5,500 (June futures: 5,516)
Target: NA
An at-the-money straddle of long 5,500c (85) and long 5,500p (70) cost 155 and it's a zero-delta positions where both options are equally sensitive to price change. If the Nifty moves plus or minus 100 points, the in-the-money option will gain 50-60 in premium value, while the out-of-money option will lose 20-30. Reversing the straddle, then, would offer a trading gain of 15-25 per cent.
HDFC
Current: Rs 648;
Target: Rs 620
The stock is testing support between Rs 640-650. If that is broken, it could fall till around the Rs 615-620 mark inside three sessions. Keep a stop at Rs 655 and go short. Add to the position between Rs 638-644 and reset the stop till Rs 650. Start booking booking profits below Rs 620.
HINDALCO
Current: Rs 177;
Target: Rs 170
Selling pressure seems to be intensifying and the stock could test support at Rs 160-165 in the next three to five sessions. Keep a stop at Rs 180 and go short. Increase the position between Rs 172-174 and reset the stop loss to Rs 176. Start booking profits at Rs 170.
TATA MOTORS
Current: Rs 984;
Target: Rs 965
The stock has made a downside breakout on reasonable volumes. It could have a target of around Rs 960-965 in the next three sessions. Keep a stop at Rs 1,005 and go short. Add to the position between Rs 970-980 and reset the stop to Rs 990. Start booking profits below Rs 965. if it breaks Rs 1,005, it could rise till around Rs 1,030.
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