Trading recommendations - Feb 02, 2004

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Maruti - we have been recommending a buy on this automobile powerhouse as the numbers expected from the company suggest that the counter is likely to see rapid upmoves based on fundamental and technical strength. Previous recommendations were made vide our editions dtd 18/10/03, 08/11/03, 03/01/04 & 25/01/04 ( click here to view our previous editions ). The 30 day SMA is proving to be a good support and the same is poised at the 395 levels. We recommend a buy on declines for the patient investor.

Your call of action - 

• Investors / cash segment players - we advocate delivery based buying into the counter at Rs 390 only with a stop loss at 374 and a target of 450 - 475 be maintained by end of February in a firm market.

• Aggressive F&O traders - buy the February futures on a breakout above 448 and maintain a stop loss at the 440 levels. Expect to book profits at the 454 in the short term and higher levels of 460 maybe possible in a firm market.

• Derivatives contract size - market lot = 1600 shares, F&O margins = 2,60,000 ( margins subject to change daily )

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