Trading desk

Nifty, Maruti & JP Associates

Nifty
Current: 5,991,
Target: 5,850

The index bounced from support at 5,945. If the support breaks, it could fall till 5,850. If it holds, the Nifty will range-trade 5,950-6,050. Possible actions: 1) Sell September Nifty with an initial target of 5,945, stop loss at 6,025. If 5,945 is broken, increase the position. 2) Take an at-the-money bearspread with long 6000p (63) and short 5900p (32) for a cost of 31. The breakeven is 5,968, and the maximum return may be 68.

Maruti
Current Price: Rs 1,463,
Target Price: Rs 1,490

The stock is climbing on strong volumes and it broke a key resistance yesterday at Rs 1,430 . The possible upside today is Rs 1,490-1,500. Keep a stop at Rs 1,450 and go long. Add to the position between Rs 1,470 and Rs 1,473. Start booking profits beyond the Rs 1,490 mark.

JP Associates
Current price: Rs 119.65,
Target Price: Rs 115

The stock is in correction mode. It has some support between Rs 117.5 and Rs 118.5, but if that is broken, it will drop to between Rs 114 and Rs 115. Keep a stop at Rs 121 and short. Increase the position between Rs 116.5 and Rs 117.5. Start booking profits below the Rs 115 mark.

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