Today's picks

Nifty, BankNifty, TCS, LIC Housing & Tata Motors

NIFTY
Current price: 5,687,
Target price: NA

The most optimistic projection is a target of 5,850 Nifty by March 31 settlement. Support on the downside exists down to 5,550. Thus, traders have roughly +/-150 range to focus on in the next three sessions. A long straddle with March 5,700c (42) and long March 5,700p (39) can be offset with short March 5,800c (11) and short March 5,600p (15). The position costs net 65 and breakevens are at 5,635 and 5,765.

BANKNIFTY
Current price: 11,523
Target price: 11,400

The BN could see a pullback till 10350 or a rise till 11700 within settlement. A pullback looks more likely. You could short the April future with a target of 11400 and a stop loss at 10675. Increase the short between 11475-11500 and reset the stop to 11550. If you’re long-biased, a bullspread of long March 11600c (92) and short March 11700c (55) costs 37 and offers a max return of 63.

TCS
Current price: Rs 1,120,
Target price: Rs 1,070

The stock has heavy resistance in the 1,120-1,130 zone and it could be ready for a slide back to support at 1,070. Keep a stop at 1,135 and go short. Increase the position between 1,090 and 1,100 and reset the stop to 1015. Start booking profits at 1070.

LIC HOUSING
Current price: Rs 221,
Target price: Rs 230

The stock seems to have made an upside breakout on decent volumes. It could have an upside till around 230-235 in three sessions, if it can overcome resistance at 224. Keep a stop at 215 and go long. Increase the position between 224 and 226. Start booking profits at 230.

TATA MOTORS
Current price: Rs 1,224 Target price: Rs 1,255

The stock has jumped on a volume expansion and it could move up till around 1,260-mark. There is also a potential to slide back till 1,160. Keep a stop at 1,205 and go long. Increase the position between 1,230 and 1,240 and reset the stop to 1,225. Book profits above 1,255. If it breaks the 1,205 stop, consider shorting with an initial target of 1,190 and a three-session target of 1,160.

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