Trading recommendations - Dec 06, 2004

Mah & Mah - this scrip was recommended last week and has performed well as a 5 % appreciation has been seen on the counter last week. Technical traders may note that the scrip has closed at it's highest ever levels ( though intraday levels have been higher at 535 ) and that is a sign of strength. The scrip shows strength on the oscillators which are rallying in a saucer formation and the relative strength of this counter is high. We recommend a buy. Once the 535 levels are surpassed, this stock enters a new trading zone.  

Your call of action - .

• Investors / cash segment players - Buy at the current levels and hold with a stop loss at the 470 levels. Expect to book profits at the 530 / 535 levels in the short / medium term in a conducive market. Over the longer term, expect higher levels of 550 - 565.

• Aggressive F&O traders - Buy the December futures at the current levels and hold with a stop loss at the 484 levels. Expect to book profits at the 520 - 525 levels in the short / medium term. Options players may buy the December 510 calls at a premium of Rs 11.

• Derivatives contract size - Market lot = 625 shares. F&O margin = approx Rs 53,000 (subject to change daily )

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