Trading recommendations - Jan 02, 2005

Cipla - This scrip was recommended by us via sms on Dec 21, 2004 at 306 levels and has performed well. Having one of the highest relative strength reading at 1293 in the entire market, this pharmaceuticals major shows a very strong chart reading as the higher tops and bottoms formation and a breakout above the 298 levels imbibes confidence. The oscillators are supporting the upmove and the scrip has closed at it's highest since Dec 1999. We recommend a bullish outlook on the counter.

Your call of action - .

• Investors / cash segment players - Buy as long as the scrip maintains levels above the 300 mark and hold with a stop loss at the 288 mark. Expect to book profits at the 335 - 342 levels in the short / medium term.

• Aggressive F&O traders - Buy the January futures ( quoting at Rs 3 premium to cash ) at the 315 levels and hold with a stop loss at the 302 levels. Expect to book profits at the 330 - 335 levels in the short / medium term in a conducive market. Options players may buy the 330 January calls at a premium of Rs 11.

• Derivatives contract size - Market lot = 1,000 shares. F&O margin = approx Rs 50,000 (subject to change daily )

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