Trading recommendations - March 21, 2004

ICICI Bank - This banking major has been advocated by us a good investment on declines and is currently reaching entry levels. What is noteworthy is the fact that the scrip has made a head & shoulder formation with the neckline being at the 300 mark. Since the peak of the head was at the 350 mark, we expect the fall to be of an equivalent magnitude ( Rs 350 - 300 = Rs 50 ) from the neckline. A target price of 250 is arrived at, which is a text book style completion of the formation. However, the markets maynot exactly behave in textbook format and buying maybe contemplated at slightly higher levels.

Your call of action - 

• Investors / cash segment players - Delivery based buyers can start buying the stock at levels of 255 - 260 with a liberal stop loss of 248 and expect to book profits at the 280 levels.

• Aggressive F&O traders - Start buying the April futures on declines, preferably at the 265 levels and maintain a liberal Rs 10 stop loss. Expect to take profits at the 277 - 280 mark by the month end.   

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