Today's picks
NIFTY, SBI, TCS, HDFC & BHEL
NIFTY
Current: 5,885 (April futures 5,901)
Target: NA
The index is testing resistance between 5,900 and 5,950 and it has support at 5,850 and 5,800. A “zero-delta” straddle of long 5,900p (premium 45) and long 5,900c (49) costs 94. There’s a good of settling both legs at profits. On a rise, the call gains more than the put loses. Vice-versa, if the market falls, the put will gains more than the call loses.
SBI
Current Price: Rs 2,861.15
Target Price: Rs 2,920
The stock is on the verge of an upside breakout. If it crosses resistance at Rs 2,875, it should move till around the Rs 2,900-2,930 mark. Keep a stop at Rs 2,840 and go long. Add to the position between Rs 2,875 and Rs 2,885 and reset the stop to Rs 2,870. Start booking profits above Rs 2,920. If the Rs 2,840 stop is broken, the downside could be till between Rs 2,810 and Rs 2,820.
TCS
Current Price: Rs 1,192
Target Price: Rs 1,150
The stock could stabilise on the downside at support around Rs 1,170. If it falls below that, it will hit the next support at Rs 1,140-1,150. Keep a stop at Rs 1,210 and go short. Add to the position between Rs 1,160 and Rs 1,170 and reset the stop to Rs 1,180. Book profits below Rs 1,150. If the Rs 1,210 stop is broken, go long with a stop-loss at Rs 1,190 and a target of Rs 1,250.
HDFC
Current Price: Rs 732
Target Price: Rs 755
The stock seems to have made a small breakout. It could move till Rs 755-765. Keep a stop loss at Rs 715 and go long. Increase the position between Rs 740 and Rs 745 and reset the stop to Rs 735. Start booking profits above Rs 755. If the Rs 715 stop is broken, the next support is Rs 695.
BHEL
Current Price: Rs 2,060
Target Price: Rs 1,965
The stock saw selling on high volumes. It could have a downside till around Rs 1,950-1,970, if support at the current zone breaks. Keep a stop at Rs 2,085 and go short. Increase the position between Rs 2,020 and Rs 2,040. Start booking profits below Rs 1,970. If the Rs 2,075 stop is broken, it could rebound till Rs 2,110.
The target price and projected movements given above are for Monday's trading session