Trading recommendations - Jan 23, 2005

Tisco - This steel major has shown a resilience on the last trading day of the previous week and come off it's lows. We have been recommending shorts on this counter for intraday players with good results. The scrip has been trading below it's 30 day SMA and is at the threshold of a crossover above this level. The short term momentum oscillator ( stochastics ) seem to point towards a pullback rally, which will be confirmed only above the 354 / 355 levels. Buy on that confirmatory breakout.

Your call of action -

• Investors / cash segment players - Buy once the scrip trades convincingly above the 355 levels and hold with a stop loss at the 340 levels. Expect to book profits at the 372 - 375 levels in a conducive market in the near / medium term.

• Aggressive F&O traders - Buy the Feb futures above a convincing trade over the 354 - 345 levels. Hold with stop loss at the 348 levels and a profit target of 360 - 362 in the near term in a conducive market.

• Derivatives contract size - Market lot = 1,350 shares. F&O margin = approx Rs 85,000 (subject to change daily ).

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