Trading recommendations - May 29, 2005

Ballarpur - this scrip was recommended recently near the 100 mark and has appreciated 20 % in a fortnight. The scrip is in an intermediate / long term upmove and the rally is appearing to gain momentum. We feel this scrip is one of the fastest potential gainers in the market in the near / medium term. Note the oscillators that are pointing towards a bullishness in the undertone and traded volumes that are perking up. We recommend a buy.

Your call of action -

• Investors / cash segment players - hold long positions initiated via daily sms alerts and buy afresh on declines to the 115 - 118 levels. Average lower upto the 110 mark and maintain a stop loss at the 105 levels. We expect levels of 137 - 140 in the medium term scenario in a conducive market.

• Aggressive F&O traders - Buy the June futures at the current levels and keep room for downward averaging till the 115 levels. Maintain a stop loss at the 108 levels. Expect to book profits at the 133 - 135 levels in the short term and 140 levels over the medium term. Options players do not have a choice due to liquidity problems.

• Derivatives contract size - Market lot = 1900 shares. F&O margin = approx Rs 36,000  (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.