Trading recommendations - Apr 10, 2005

ITC - This scrip was recommended vide our earlier editions dtd Feb 06 & 27, March 06, 13 & 26 and April 02, 2005. Click here to view the previous recommendations. The stock has clearly defied the general market trend and rallied to it's lifetime high area. As the chart below indicates, the outlook for the scrip is bullish and the upward sloping trendline is an indicator of that. While the scrip makes a higher bottom consistently, a higher top was awaited, which has been achieved now. A consistent close above the 1400 levels will be a conclusive bullish indicator. The oscillators are confirming the bullishness and the traded volumes show a rise which is a confidence inspiring factor. We maintain a bullish outlook for this scrip for the medium / long term players.

Your call of action -

• Investors / cash segment players - we recommend a buy on the counter on all major declines, preferably at the 1375 - 1380 levels. Maintain a room for averaging till the 1300 levels. Expect profit taking at the 1500 - 1540 levels in the near / medium term. Over a longer period, expect higher levels.

• Aggressive F&O traders - Buy the May futures at the 1370 levels and hold with a stop loss at the 1310 levels. Expect to book profits at the 1460 - 1480 levels in the near / medium term in a conducive market.

• Derivatives contract size - Market lot = 150 shares. F&O margin = approx Rs 35,000 (subject to change daily )

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