Reliance Industries - This counter has been advocated by us as capable of leading the rally from the front. The company has hiked product prices in the textile segment, it's infocom division has done well and declared excellent results. Since the counter has a high weightage on the indices, the counter is capable of swinging the markets significantly. The scrip is at it's April 2001 levels and is poised to test the 400 peak. We recommend a buy for the aggressive traders.

Your call of action - 

• Investors / cash segment players - Delivery based buying is recommended above the 380 levels and positions should be held with a stop loss at the 374 levels. Expect 400 levels in a conducive market. 

• Aggressive F&O traders - Buy the September futures at the current levels and hold with a 7 Rs stop loss and await 394 & 400 levels. Options players can buy the September calls at a strike price of 400 and at a premium of Rs 8.

• Fixed income strategy - sell the Aug puts at strikes of 350 at a premium of Rs 0.50 in small lots only.

• Derivatives contract size - Market lot = 600 shares / Margin approx Rs 39,000 ( margins are subject to change daily )