Today's picks

Nifty, HCL Tech, M&M, RCOM & Reliance

NIFTY
Current: 5,851 (April futures:5874),
Target: NA
The index is between resistance at 5,900 and 5,950 and support at 5,750. A ‘zero-delta’ strangle of long 5,800p (premium 31) and long 5,900c (47) costs 78. There’s a good chance both legs will be hit and settled for profit. Alternatively, consider a butterfly with a long 5,900c(47), two short 6,000c (18.5x2) and a long 6,100c (6). This could have a maximum loss of 16 and a maximum gain of 84 with breakevens at 5,916; 6,084.

HCL TECH
Current Price: Rs 523,
Target Price: Rs 505
The stock jumped to a new high on excellent results. There could be profit-booking tomorrow, pulling the price back till around Rs 500-505. Keep a stop at Rs 530 and go short. Add to the position between Rs 510 and Rs 515. Book profits below Rs 505. If the Rs 530 stop is broken, the rally could continue till around Rs 535-537.

 

M&M
Current Price: Rs 763,
Target Price: Rs 785
The stock could have an upside till Rs 785 but it could also see profit-booking that pulls it back till Rs 745. Keep a stop at Rs 755 and go long. Add to the position between Rs 770 and Rs 775. Start booking profits at Rs 785. If the Rs 755 stop is broken, consider going short with a target of Rs 745 and a stop-loss at Rs 760.

RCOM
Current Price: Rs 106,
Target Price: Rs 101
The stock could slide till around the Rs 100-101 level — it is range-trading the Rs 100-113 zone. Keep a stop at Rs 108 and short. Add to the position between Rs 103 and Rs 104. Start booking profits at Rs 101.

RELIANCE
Current Price: Rs 1,026,
Target Price: Rs 995
The stock is interestingly poised. It could pull back to Rs 990-1,000 or rise till Rs 1,050. It closed on the weak side. Keep a stop at Rs 1,035 and go short. Add to the position between Rs 1,005 and Rs 1,015. Start booking profits below Rs 995. If the Rs 1,035 stop is broken, consider going long with a target of Rs 1,050 and a stop-loss at Rs 1,025.

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