Trading recommendations - Aug 29, 2004

Tata Motors - this counter has been advocated by us as a short sell in the daily edition and was also covered in the previous weeks edition. The scrip is nearing support levels as shown below by the two parallel trendlines. The termination of the truckers strike will also boost sentiments as the sector saw a bear hammering due to production loss fears. A buy on declines is advocated for the coming week.

Your call of action - 

• Investors / cash segment players - buy for delivery in very small lots at the 373 levels and hold with a stop loss at the 365 levels. Expect profit taking at the 382 - 384 mark in the near term. Since the buying is based on technical considerations, quantities should be restricted.

• Aggressive F&O traders - Buy the September futures at the 377 levels and hold with a stop loss at the 372 levels. Expect to book profits at the 385 levels in the near term in a conducive market.

• Derivatives contract size - Market lot = 825 shares, F&O margins = approx Rs 54,000 ( subject to change daily ).

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