Trading recommendations - April 11, 2004

ONGC - this heavy weight index scrip is showing a strength on the charts as the counter has signaled a breakout above a 7 week congestion level. Should the scrip remain above the 880 levels, expect the bullishness to continue. The counter has suddenly zoomed into the top 5 outstanding long positions in the futures segment in the recent past. This is an interesting development as bullish sentiments are seen in the undercurrent for this scrip. The momentum oscillators are showing a bullishness in the undertone and are in a buy mode.

Your call of action - 

• Investors / cash segment players - Buy in the cash segment at the current levels and maintain a stop loss at the 860 levels. Expect to book profits at the 910 - 920 levels in a conducive market.

• Aggressive F&O traders - Buy the April futures above a 885 level and hold with a stop loss at the 866 level. Expect to book profits at the 905 - 910 levels in the near term, in a conducive market.

• Derivatives contract size - Market lot = 300 shares, F&O margins = approx Rs 46,000 ( subject to change daily ).

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