Trading recommendations - Feb 08, 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 & 02/02/04 ( 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 420 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 430, with a stop loss at 410 and a target of 475 - 485 be maintained by end of March in a firm market.

• Aggressive F&O traders - buy the February futures on a breakout above 452 and maintain a stop loss at the 444 levels. Expect to book profits at the 464 in the short term and higher levels of 470 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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