Tata Steel
Current price: Rs 601,
Target price: Rs 580
The stock has bottomed out at 575-580 and bounced on reasonable volumes. It is hitting massive resistance between 602 and 610 and may fall back into a range-trading pattern between 580 and 600 after testing support at 580 again. Keep a stop at 607 and go short. Add to the position between 590 and 595. Start booking profits below 582.
JP Associates
Current price: Rs 84,
Target price: Rs 88
There is a lot of resistance at 88 and good support starting at 82. Despite high volumes yesterday on the rise, the 88 resistance may not be broken. Keep a stop at 82 and go long. Add to the position between 85.5 and 86.5. Start booking profits above 88.
Reliance Capital
Current price: Rs 562,
Target price: Rs 580
The stock has made an upside breakout on high volumes. Keep a stop at 550 and go long with a three-session perspective – the stock is excessively volatile. It has a target of 585, which should be achieved inside three sessions and it may rise till around the 600 mark. Add to the position between 567 and 572. Book profits above 580 and, if you hold with a 600-target, reset the stop to 570.
(The target price and projected movements given above are in terms of the next one trading session, unless otherwise stated)
