Trading desk

LIC Housing Finance, Reliance Communications & JP Associates

LIC Housing Finance
Current Price: Rs 1,054,
Target Price: Rs 950

Some signs of stability in that the price bounced from 945 on huge volumes. This could have been a selling climax - in that case, the stock will range trade 1050-1100. However, there is a good chance that it would test 945-950 again in the next 3-5 sessions. Keep a stop at 1070 and go short.. Increase the position between 1020-1030 and reset the stop to 1040. Start booking profits below 960. If 1070 is broken, go long with a stop at 1060 and a target of 1100.

Reliance Communications
Current Price: Rs 137,
Target Price: Rs 142

The stock has taken a hammering in the past month, falling from Rs 185 to recent lows of Rs 135. It could see a temporary recovery tomorrow till around the Rs 142 level. Keep astop at Rs 135 and go long. Increase the position between Rs 139 and Rs 140. Start booking profits above Rs 141. If the Rs 135 stop is broken, it might fall till Rs 131 so consider going short with a stop at Rs 137.

JP Associates
Current Price: Rs 114.5,
Target Price: Rs 110

The stock has broken successive supports on high volumes. It has a downside target in the range of 109-110. However, if the trend reverses, it could also jump till around 121. Keep a stop at 116.5 and go short. Increase the position between 112-113. Start booking profits below 110. If the 116.5 stop loss is broken, reverse the position and go long with a stop at 115 and a target of 121.

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