Trading desk

BankNifty
Current Level: 9,675
Target level: 9,775

Carryover on the financial index has been excellent so far. There’s resistance above 9,750 but the trend looks positive despite the selloff yesterday. There’s support at around 9,625. With a two-session perspective, one would expect the BankNifty to test 9,750-9,800 again. Keep a stop at 9,625 and go long in the July futures with a target of 9,750-9,775. If 9,625 is broke, reverse the position and consider going short since the next support could be 9,525.

Tata Steel
Current Price: Rs 494
Target Price: Rs 475

Carryover volumes have been low and open interest and cash volumes have also dropped. So has the price. July (487) is at significant discount to June (494) and this could lead to arbitrage where traders sell June and buy July, thereby putting further pressure on an already bearish price trend. Keep a stop at 500 and short. Increase the position below 487. Start covering at 475.

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