TRADING DESK

Nifty,Larsen & Toubro,Sesa Goa,

Nifty
Current level: 5275
Target level: 5325

The market index seems to have made an upside breakout that could lead to a move till around the 5,350-mark but, there is resistance above 5,325. On the downside, there’s support at 5,250. Possible actions: A long Nifty with a stop loss at 5,250 and an initial target of 5,325. A bullspread of long 5,300c (38) and short 5,400c (8) with a net cost of 30 and possible maximum return of 70.

Larsen & Toubro
Current price: Rs 1,777
Target price: Rs 1,800

The stock jumped in the last session. It seems to have enough momentum to test resistance at the 1800-mark but, the steep rise also creates a downside risk since there is little support close to the current price. Keep a stop at 1,765 and go long. Increase the position beyond 1,785 and reset the stop loss to 1,780. Start booking profits above 1,800.

Sesa Goa
Current price: Rs 360
Target price: Rs 370

The stock seems to have made a positive breakout after bottoming between 330 and 335. The poattern suggests, a rise till around the 370-mark, is possible and could go further if there is some volume expansion. Keep a stop at 355 and go long. Increase the position beyond 363 and start booking profits at 370.

If the stop at 355 is broken, the stock could drop to 345 so consider reversing the position and going short.

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