Today's picks

Nifty, Bank Nifty, Ranbaxy, Sun Pharma, Jindal Steel & Ambuja Cement

NIFTY
Current: 6,695 (futures: 6,737);
Target: NA
Stop-loss long positions at 6,670 and stop-loss short positions at 6,800. Breakouts or breakdowns could go till 6,625 or till 6,825. A wide strangle of long 6,900c (15) and long 6,500p (11) could double in value if the index swings 100 points. (All futures prices above)

BANK NIFTY
Current: 12,506 (futures: 12,598);
Target: 12,650 (futures: 12,750)
Keep a stop at 12,500 and go long. Add to the position between 12,675 and 12,700. Book profits above 12,750. If the index breaks below 12,500, it could fall till 12,350 so be prepared to reverse and short with a stop-loss at 12,550. (All futures prices above)

RANBAXY (Current: Rs 443; Target: Rs 460)
SUN PHARMA (Current: Rs 587; Target: Rs 575)
The swap of five Ranbaxy shares (Rs 2,215) for four Sun Pharma (Rs 2,348) gives a current premium to Ranbaxy. Arbitrage by buying Ranbaxy (stop-loss at Rs 435) and selling Sun Pharma (stop-loss at Rs 600). Book profits in Ranbaxy above Rs 460 and Sun below Rs 575.

JINDAL STEEL
Current price: Rs 282;
Target price: Rs 266
Keep a stop at Rs 290 and go short. Add to the position between Rs 270 and Rs 277. Book profits at Rs 266.

AMBUJA CEMENT
Current price: Rs 209.5;
Target price: Rs 216
Keep a stop at Rs 206 and go long. Add to the position between Rs 210 and Rs 212. Book profits above Rs 216.

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