Trading recommendations - Aug 14, 2005

Glaxo -  this scrip has been recommended earlier vide our edition dtd. Jan 16 & 30, June 26, July 02, 09, 16 & 30, and Aug 07, 2005 and the stock has rewarded bulls handsomely. Click here to view the previous recommendations. Currently, the scrip trades below the all time high and is supported by oscillators. The high relative strength ( to understand the importance of relative strength, click here to view the tutorial ) of 170 vis-a-vis the Nifty ( where 100 = base ) is another positive. We have projected a price target of 1020 - 1040 and we re-affirm the same. A buy is recommended is for the patient trader / investor.

Your call of action -

• Investors / cash segment players - Buy on declines to the 880 - 890 levels and average lower in pyramid fashion till the 840 mark. A stop loss at the 820 levels is suggested with a price target of 1020 - 1040 in the medium / long term.

• Aggressive F&O traders - Buy the September futures ( still illiquid ) at the 900 levels and average at the 875 - 880 levels. A stop loss at the 860 levels is advocated and profit taking is suggested at the 960 in the medium term.

• Derivatives contract size - Market lot = 300 shares. F&O margin = approx Rs 43,000 (subject to change daily )

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