Today's picks

Nifty, BankNifty, TCS, BPCL & JP Associates

NIFTY
Current: 5,499,
Target: NA
The Nifty’s short-term trend is rangebound between 5,425 and 5,625. Breakouts could go till 5,300 or 5,700 – a southward move is more likely as the long-term trend is down. A long 5,400p (36) and long 5,600c (26) can be laid off with a short 5,300p (15) and 5,700c (10). The resulting position costs 37 and breakevens are 5,363, 5,637. Maximum return in either direction is 63 if there is a breakout before May 26. There are good chances of returns in both directions.

BANKNIFTY
Current: 10,912.35
Target: 10,650
The financial index may have made a downside breakout on Monday. The chart pattern indicates that it could fall till 10,600 within the next three sessions if there is a valid breakout. Keep a stop at 11,025 and short the May futures. Add to the position between 10,750 and 10,825 and reset the stop to 10,900. Start booking profits below 10,650.

TCS
Current price: Rs 1,131,
Target price: Rs 1,100
The stock has a pattern of lower lows that could lead to it breaking below 1,100 and hitting 1,070 in the next five sessions. However, it could also recover till 1,160-1,170. Keep a stop at 1,145 and go short. Add to the position between 1,110 and 1,120 and reset the stop to 1,128. Book profits or partial profits at 1,100. If the 1,145 stop breaks, reverse and go long with a target of 1,165.

BPCL
Current price: Rs 652,
Target price: Rs 680
The stock rose steeply to hit a recent high of 681. It has a bullish intermediate trend and we have seen a little reaction in the past 2-3 sessions. It will test resistance around 680 again within the next three sessions and it could run till 690 if it breaks out. Keep a stop at 640 and go long. Add to the position between 660 and 665 and reset the stop to 650. Book profits at 680.

JP ASSOCIATES
Current price: Rs 84.5
Target price: Rs 79
The stock is testing key support between 84 and 85. If it drops below 84, it could fall till 79 and that seems a reasonable target in the next three sessions. Keep a stop at 87 and go short. Add to the position between 82 and 83 and reset the stop to 86. Start booking profits below 80. If the 87 stop is broken, it could rise till 90, so there is a case for going ‘double-plus’.

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