Trading recommendations - June 12, 2005

Ashok Leyland - this scrip was recommended in the previous weeks and has signalled a breakout above a 20 month old channel. The traded volumes have been exceptionally high and signal a high trader interest. As long as the scrip maintains levels above the 25 levels and volumes are high, expect the bullish optimism to continue. The oscillators are suggestive of a continued uptrend and we recommend a buy.

Your call of action -

• Investors / cash segment players - buy the scrip at the current levels and hold with a stop loss at the 22.50 levels. Expect to book profits at the 29 levels in a conducive market scenario in the short / medium term.

• Aggressive F&O traders - buy the July futures ( quoting at Re 0.50 discount to cash ) above the 25 levels and hold with a stop loss at the 23.50 mark. Expect to book profits at the 28 levels in a conducive market scenario in the short / medium term.

• Derivatives contract size - Market lot = 9550 shares. F&O margin = approx Rs 40,000 (subject to change daily )

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