Trading recommendations - Dec 26, 2004

Mah & Mah - This scrip has been our star performer and has returned superlative profits to bulls in the recent weeks. We recommended this scrip atleast 15 % lower vide our earlier editions dtd Sept 19, Nov 14, Nov 27, Dec 05, Dec 12 and Dec 19, 2004. Click here to view the previous reports. The positive newsflow continues to trickle in with the acquisition of Jiamling tractors ( China ), procurement of arms manufacturing license for defense contracts. The falling crude prices are an additional bullish trigger for the stock. Chartically, the scrip shows a bullishness with rising tops and bottoms and a breakout above the 535 levels into a new trading zone with almost zero upside resistance. Also note how the flag formation is confirmed with a target of 600 + being re-affirmed by us - barring unforseen circumstances. A hold on existing positions and buying on declines is recommended.

Your call of action - .

• Investors / cash segment players - buy on significant declines to the 515 - 520 levels and hold with a stop loss at the 500 levels. Expect to book profits at the 575 levels in the pre budget scenario in a conducive market.

• Aggressive F&O traders - Buy the January futures ( quoting at Rs 5 premium to cash ) on declines to the 535 levels. Hold with a liberal stop loss at the 522 levels and expect profit taking at the 565 levels in a conducive market in the medium term.

• Derivatives contract size - Market lot = 625 shares. F&O margin = approx Rs 57,000 (subject to change daily )

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