Today's Stock Picks - Reliance Communications - Aug 3 2011

NIFTY
Current: 5,457 (Aug fut: 5,467),
Target: NA
The index breached support at 5,450 intra-day before a small recovery. It looks bearish. Three strategies come to mind. 1) Short August future with a stop loss at 5,500 and a 3-session target of 5,300.2). Bearspread with long 5,400p (72) and short 5,300p (42) - net cost of 30, max gain of 70. 3). Long 5,500c (82) and long 5,400p (72). This long strangle will gain 20-25 if the market swings 100 points either way.

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