Trading Desk

Nifty
Current level: 5,353
Target level: 5,400

The index derivatives have been generating huge volumes, and high open interest as well. The index should test 5,400 inside the settlement. The long-term bull market will be confirmed if the Nifty can close above 5,400. In that case, it might run up until 5,525-5,600. On the downside, a slide till 5,275 is possible. Possible action: Keep a stop at 5,325 and go with a long June Nifty and a target of 5,400. The other possibility is a long 5,400c (17) and a long 5,300p (17). This strangle costs 34 and it has breakevens at 5,266 and 5,434

ICICI Bank
Current Price: Rs 900
Target Price: Rs 920

The stock has cleared resistance at 880 very smoothly and jumped back till the psychologically important level of 900. It has a potential target of 915-920 and could attain this level in the next 2 sessions. The danger is a lack of support on the downside. Keep a stop at 890 and go long. Beyond the 905-mark increase the long position. Start booking profits beyond 915.