Trading desk

BankNifty, Indiabulls Real Estate & Tata Motors

BankNifty
Current: 12,009,
Target: 12,350

The financial index has rebounded on volume expansion from a recent low at 11,500. This could be due to short-covering or a genuine trend reversal. Either way, the December futures (which is at premium to underlying) could rise till around 12,350. Keep a stop at 11,900 and go long. Increase the position between 12,100 and 12,150 and reset the stop top 12,000. Take profits above 12,325.

Indiabulls Real Estate
Current Price: Rs 154,
Target Price: Rs 163

The stock has jumped on high volumes from a recent low of Rs 118. It could test resistance between Rs 162 and Rs 165 today if the trend continues for a third session. Keep a stop at Rs 150 and go long. Increase the position between Rs 158 and Rs 160 and reset the stop to Rs 157. Start booking profits above Rs 162

Tata Motors
Current Price: Rs 1,186,
Target Price: Rs 1,140

The stock has moved up considerably but on low volumes, suggesting this was pure short-covering. If the downtrend is renewed, a fall till Rs 1,140 is likely. Keep a stop at Rs 1,200 and go short. Increase the position between Rs 1,160 and Rs 1,165 and reset the stop to Rs 1,170. Start booking profits below Rs 1,145.

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