Trading recommendations - March 13, 2005

HDFC - This scrip was recommended vide our earlier editions dtd Nov 19 2004, Feb 06 & 13 and March 05 2005. Click here to view the previous recommendations. March being a typical institutional activity month, this scrip stands a chance of higher volume trading pattern. Note the higher relative strength at 256 and the oscillators showing a strong movement on the medium term charts. The scrip is making a rising tops and bottoms formation and is near it's life-time highs. A sustained close above the 800 levels will see it make a new high on a closing basis on the quarterly charts. We recommend a buy for the patient and disciplined investors.

Your call of action -

• Investors / cash segment players - buy the scrip at the current prices and hold with a stop loss at the 765 levels. Expect to book profits at the 850 - 875 levels in a conducive market in the medium term. Long term players may expect even higher levels.

• Aggressive F&O traders - Buy the April futures at the 800 - 805 levels and hold with a liberal stop loss at the 770 levels. Expect profit taking at the 840 - 845 in the short / medium term time frame. Options players do not have much of a choice due to poor liquidity on the counter.

• Derivatives contract size - Market lot = 600 shares. F&O margin = approx Rs 78,000 (subject to change daily )

Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.