Trading recommendations - March 20, 2005

BHEL - This is another recommendation from us that has under-performed and corrected sharply. A retracement study shows that the scrip has tested the 50 % levels at the 775 mark, but managed to close above it. A major support at the 750 levels ( 68.20 % retracement ) exists, which needs to be watched during the coming week. Buying at lower levels with a view to exit at the short term moving average levels would be a medium risk strategy.

Your call of action -

• Investors / cash segment players - Buy at lower levels of 760 - 770 and hold with a liberal stop loss at the 720 mark. Expect to book profits at the 830 - 850 mark in a conducive market in the medium term time frame.

• Aggressive F&O traders - Buy the April futures at the 785 - 790 levels and hold with a stop loss at the 774 levels. Expect to book profits at the 820 levels in a conducive market in the medium term.

• Derivatives contract size - Market lot = 600 shares. F&O margin = approx Rs 85,000 (subject to change daily )

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