Bharat Forge - This auto ancillary major has been a frequent recommendation in our flavours edition since May 03 when the price was at 300 levels. The counter was recommended again in our 4/7/03, 11/7/03, 18/7/03, 25/7/03, 1/8/03 & 16/8/03 editions. Last week, we had very accurately expected the counter to have excellent short term buying support at the 380 levels. This level is the 33 % retracement of the entire upmove and as per the Dow theory, would see a bounce-back. The stock rallied from a low of 381 levels to 440 in 5 sessions. We reiterate a buy on the counter.

Your call of action - 

• Investors / cash segment players - Delivery based buying is recommended at the 420 - 425 levels and positions should be held with a stop loss at the 405 levels. Keep some room for downward averaging rather than buy aggressively in a single lot. Expect 460 - 470 levels in a hurry - in a conducive market. 

• Aggressive F&O traders - Derivatives n/a.

• Derivatives contract size - Derivatives n/a.