Trading recommendations - June 05, 2005

Dabur - this recent recommendation has performed exemplarily and lived up to our expectations. With a high relative strength of 249 vis-a-vis the Nifty ( where 100 = base ), this is a strong market out-performer. The oscillators are indicating a prevalent bullish trend and is in the second leg of the upmove with higher volumes. We foresee a target of 155 in the short term in a conducive market scenario. Please also refer to an updated special report on Ballarpur Inds in the special reports section from our homepage or click here

Your call of action -

• Investors / cash segment players - Buy at the current levels and hold with a stop loss at the 120 mark. Expect to book profits above the 155 levels in the near / medium term in a conducive market scenario.

• Aggressive F&O traders - Buy the June futures ( quoting at Rs 2.50 discount to cash ) at the 126 levels and hold with a stop loss at the 118 levels. Expect to take profits at the 140 + levels in a conducive market scenario in the short / medium term. Longer term players may expect better levels.  Options players have no choice due to liquidity problems.

• Derivatives contract size - Market lot = 1800 shares. F&O margin = approx Rs 37,000 (subject to change daily

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