Trading recommendations - Sept 26, 2004

Tisco - This steel major is showing signs of bucking the cautious trend in the markets as of now and the outlook is positive as the pre result build up of positions is likely to be the highest on this counter. The F&O positions in the last 6 months have shown the counter to be the top most futures open interest candidate and a traders favourite. The recent fall has failed to breach the 200 day SMA and that is a  sign of strength in the near term. The recent bar reversal on Wednesday ( Sept 22 2004 ) will be the immediate resistance above which the stock will turn bullish. A breakout above the 297 will trigger a buy, especially if the traded volumes are in excess of 90 lac shares on the NSE.

Your call of action - 

• Investors / cash segment players - Buy above the 297 mark and hold with a stop loss at the 288 levels. Expect profit taking at the 314 and 320 in the short and medium term respectively in a conducive market.

• Aggressive F&O traders - Buy the October futures above the 296 levels and hold with a stop loss at the 291 levels. Expect profit taking at the 308 levels in the near term in a positive market.

• Derivatives contract size - Market lot = 1350 shares. F&O margin = approx Rs 66,000 (subject to change daily )

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