Trading recommendations - Jan 09, 2005
NTPC - this PSU power major has been repeatedly recommended by us via sms, daily editions and our flavours editions dtd Dec 26, 2004 and Jan 02, 2005. Click here to view previous files. After completing a target of 90, the scrip has declined to its 32 % retracement levels of 83 levels. We feel a deeper correction to the 50 % retracement levels may see the stock testing the 80 - 81 levels where it becomes a good buy again.
Your call of action -
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Investors / cash segment players - Buy the scrip on minor declines to the 80 - 81 mark and hold with a stop loss at the 78 levels. Expect to book partial profits at the 85 + levels in the short term and 88 - 90 over the next few months in a conducive market.
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Aggressive F&O traders - Buy the Jan futures ( quoting at Re. 1 premium to cash ) on declines to the 81 mark and hold with a stop loss at the 78.50 levels. Expect to book profits at the 85 + levels in the short term in a conducive market. Options players may buy the Jan 90 calls at a premium of Rs 1.50
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Derivatives contract size - Market lot = 3,250 shares. F&O margin = approx Rs 45,000 (subject to change daily )
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