Trading desk

BankNifty, JP Associates & Tata Steel

BankNifty
Current: 12,735 (underlying),
Target: 13,000 (November Futures)

The financial index rose on high volumes in the hope of favourable RBI policy. The November futures (12,800) is at premium. If the RBI policy is favourable, the BN November futures could jump to a new high and test 13,000. If it's unfavourable, a fallback till 12,550 is possible. Keep a stop at 12,700 and go long. Increase the position between 12,825 and 12,850 and book profits at 13,000. If the stop at 12,650 is broken, go short with a target of 12,550 and a stop at 12,700.

JP Associates
Current Price: Rs 124.5,
Target Price: Rs 129

The stock has made a sharp recovery on high volumes from around the Rs 118 level. It could have run till the Rs 130 level before it hits serious resistance again and there's some indication that the intermediate trend has gone positive again. Keep a stop at Rs 122 and go long. Increase the position between Rs 126 and Rs 127. Book profits above Rs 128.5

Tata Steel
Current Price: Rs 592,
Target Price: Rs 580

The stock is starting to consolidate at the Rs 580-600 level. However, it probably has some more downside. Keep a stop at Rs 594 and go short. Increase the position between Rs 587 and Rs 589. Start booking profits below Rs 581. If the stop at Rs 595 is broken, it could rise till Rs 605.

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