Trading recommendations - Apr 03, 2005

Reliance Inds - This scrip was recommended as a buy ever since an inverted head and shoulder was confirmed above the 542 levels. Note the neckline has acted as a support at the 540 levels and the scrip has made a multiple bottom at these levels. The traded volumes and the price line are in an upswing and and a breakout above the 568 with higher volumes will see the scrip leading a market rally from the front. We recommend a buy as long as the overall market is bullish and the scrip stays above the 560 levels.

Your call of action -

• Investors / cash segment players - Buy the scrip at current levels and maintain a stop loss at the 550 levels. Expect to book profits at the 580 levels in the short term. In case the markets remain conducive, expect 590 - 595 levels.

• Aggressive F&O traders - Buy the April futures at the current levels and hold as long as the scrip remains above the 560 levels. Expect to book profits at the 580 - 585 levels in the near term in a conducive market.

• Derivatives contract size - Market lot = 600 shares. F&O margin = approx Rs 56,000 (subject to change daily )

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