Trading desk

Nifty, ICICI & Mahindra & Mahindra

NIFTY
Current level: 5,608;
Target level: 5,750
The Nifty has made a breakout backed by volumes. Charts suggest an upside till 5,700. But profit-booking could trigger a pullback to 5,550. Alternatives: (a) A long Nifty futures with stop loss at 5,570, (b) A long 5,700c (32) and short 5,800c (10) bullspread. This costs net 22, with breakeven at 5,722 and a maximum return of 78. Take the bullspread if you can hold five-sessions.

ICICI
Current price: Rs 1,050;
Target price: Rs 1,065
The stock has generated steady gains since it bottomed in early July at around Rs 835. A rise till Rs 1,065-1,070 is likely, but the price may be unsustainable except on intra-day basis. Keep a stop at Rs 1,040 and go long. Beyond Rs 1,065, start booking profits. If the Rs 1,040 stop is broken, the reaction will find support at Rs 1,030.

MAHINDRA & MAHINDRA
Current price: Rs 655.5;
Target price: Rs 670
The scrip jumped on high volumes and it has a generally bullish chart profile. M&M has resistance at Rs 660, which could be broken if it has a good session on Friday. In that case, it could rise till Rs 670. Keep a stop at Rs 650 and go long. Add to the position between Rs 660 and Rs 662. Start booking profits above Rs 669.

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