Today's picks

New Delhi : TATA STEEL Current: Rs 444 Target: Rs 425 The stock hit a new low and this breakout establishes a new chart projection. Tata Steel could have a target of Rs 420-425 in the next five sessions. Keep a stop at Rs 450 and go short. Increase the position between Rs 435-440. Book profits below Rs 425

NIFTY Current: 4,840 (Sep fut: 4,868) Target: NA The index continued to slide. It's likely to test support at the 52-week low of 4,796. If it drops below 4,775, it could slide till 4,650 in the next 3 sessions. Upside resistance is marked at 4,925-4,950 and short futures positions can be stop-lossed in that zone. A zero-delta strangle of long 4,600p (71) and long 5,100c (57) will gain 20-25 in value if there's a 100-point move.

POWERGRID Current: Rs 100 Target: Rs 96 The stock made a downside breakout on the settlement. It should test support around the Rs 95-96 levels. Keep a stop at Rs 102 and go short. Add to the position between Rs 97-98. Start booking profits below Rs 96. If Rs 102 is broken, the stock will rise till Rs 105.