Trading recommendations - Apr 18, 2005

Tata Motors - this scrip was constantly recommended by us as a short sale candidate ever since it violated the 465 mark. A pullback from the 403 levels has seen a lower tops formation which has seen the scrip unable to surpass the 438 levels on a closing basis. Any breakdown below the 403 levels will confirm a bearish trend and signal a steeper fall in the near term. Technical traders will note that the falls are on higher volumes. A bearish indicator. 

Your call of action -

• Investors / cash segment players - n/a.

• Aggressive F&O traders - short the May futures once the cash price is conclusively below the 403 levels and maintain a stop loss at the 416 levels. Expect to book profits at the 390 levels partially in the short term and 378 levels totally in the medium term in a conducive market.

• Derivatives contract size - Market lot = 825 shares. F&O margin = approx Rs 59,000 (subject to change daily )

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