Today's picks

Nifty, Axis Bank, L&T & Tata Steel

NIFTY
Current: 4,613 (December Futures: 4,614);
Target: NA
The index is bearish with resistance between 4,625 and 4,650 and support at 4,560. One-session breakout expectations could be 4,500, or 4,700. A bearspread of long 4,500p (46) and short 4,400p (24) costs 22. It could pay a maximum 78 and it will gain 15-20 in value if the Nifty drops till 4,550.  

 

AXIS BANK
Current price: Rs 849;
Target price: Rs 825
A new 52-week low means that support at Rs 820-830 will be tested again. If Axis bank drops below Rs 820, it could slide till Rs 775 in the next three-session. Keep a stop at Rs 875 and go short. Book profits below Rs 825 if you want a single session position. Or else, book partial profits and hold for a three-session target of Rs 775.

L&T
Current price: Rs 1,033;
Target price: Rs 1,070
The stock hit a new 52-week low at Rs 1,025 and closed near that mark. It could recover on short-covering till around Rs 1,070. But if it falls below Rs 1,020, it will drop till Rs 990-1,000. Keep a stop at Rs 1,020 and go long. Add to the position between Rs 1,045 and Rs 1,055. Book profits above Rs 1,070. If Rs 1,020 is broken, reverse and short with a stop at Rs 1,040.

TATA STEEL
Current price: Rs 364;
Target price: 345
The steel major closed above a new 52-week low of Rs 354. It will test those level again, and it could fall till Rs 345 if the support at Rs 354-355 is broken. Keep a stop at Rs 373 and short. Add to the position between Rs 352 and Rs 355. Book profits below Rs 345.

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