Trading recommendations - Nov 21, 2004

IPCL - This Reliance group company has been under the hammer as the scrip makes a lower tops formation on the charts. The 182 levels are a crucial double bottoms formation and also the 200 day SMA level. Should this important technical threshold support be violated, we expect a further attrition in prices. The oscillators are  pointing towards a weakness in the undertone. We recommend a short sell on the counter below the 181 mark, if the fall is on higher volumes.

Your call of action - .

• Investors / cash segment players - avoid.

• Aggressive F&O traders - Short the December futures ( quoting at Rs 2 premium to cash) below the 182 levels and hold with a stop loss at the 187 levels. Expect profit taking at the 174 - 176 in a weak market.

• Derivatives contract size - Market lot = 1100 shares. F&O margin = approx Rs 36,000 (subject to change daily )

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