Today's picks

Nifty, Bank Nifty, Hindalco, Reliance Communications & JP Associates

NIFTY
Current: 5,789 (futures: 5,797);
Target: NA
The index dropped to critical support on the 200-day moving average. A bearish session today could take it down to 5,675. A bounce will hit resistance at 5,850. Stop-loss long positions at 5,750 and stop-loss shorts at 5,835. A strangle of long 5,600p (30) and long 6,000c (26) could gain 15 on a swing of 75 points in either direction.

BANK NIFTY
Current: 11,821 (futures: 11,814);
Target: 11,600
The financial index seems to have gone into a confirmed downtrend. Keep a stop at 11,925 and short. Add to the position between 11,750 and 11,775. Book profits below 11,600. A bounce above 11,925 could run till 12,000.

HINDALCO
Current price: Rs 94.5;
Target price: Rs 90
The stock could fall till support at Rs 89-90. Keep a stop at Rs 96.5 and short. Add to the position between Rs 92.5 and Rs 93.5. Book profits at Rs 90.

RELIANCE COMMUNICATIONS
Current price: Rs 104;
Target price: Rs 98
A sharp pullback from the recent 52-week high of Rs 119-120. The stock could fall till Rs 101 or if support at Rs 101 breaks, it may fall till Rs 97-98. Keep a stop at Rs 107 and short with a three-session time-frame. Add to the position between Rs 99 and Rs 100.5. Book profits below Rs 98.

JP ASSOCIATES
Current price: Rs 61.25;
Target price: Rs 58
The stock hit a new 52-week low at Rs 60.65. Keep a stop at Rs 63 and short. Add to the position between Rs 59.5 and Rs 60.5. Book profits below Rs 58. A move above Rs 63.5 could bounce till Rs 64.5.

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