Trading recommendations - Jan 26, 2004

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Reliance - this market leader has been advocated by us a scrip likely to lead the markets from the front. The scrip has not failed to live upto our expectations and is a market out-performer by a wide margin. Previously recommended vide our editions dtd 07/06/03, 14/06/03, 21/06/03, 05/07/03, 26/07/03, 02/08/03, 09/08/03, 23/08/03, 30/08/03, 06/09/03, 20/09/03, 27/09/03, 04/10/03, 11/10/03, 26/10/03, 01/11/03, 08/11/03, 20/12/03, 27/12/03, 03/01/04 & 18/01/04 ( click here to view our previous editions ). The stock has shown tremendous resilience as it has bucked the trend and maintained a relatively strong undertone inspite of profit taking in the overall markets. The oscillators show a bounce back from oversold levels and the pre-result trade should see speculative build up on the counter.

Your call of action - 

• Investors / cash segment players - we advocate fresh delivery based buying into the counter at Rs 555 only with a stop loss at 540 and a target of 610 be maintained in the medium term.

• Aggressive F&O traders - Buy the February futures at 562 levels ( quoting at Rs 8 premium to cash ) and maintain a stop loss at the 554 levels. Expect a price of 584 to 588 in the short term - in a conducive market.

• Fixed income strategy - n/a.

• Derivatives contract size - Market lot = 600, F&O margins = Rs 80,000 ( subject to change daily )

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