Trading recommendations - Nov 24, 2003

Hind Lever - Our investors will recollect our frequent sell recommendations on this counter as it is a market under-performer since the last 3 years. We have been giving a combination of strategies including sale of out of money calls, all of which have been highly profitable. The stock is losing it's fancy with investors / traders and is unlikely to rally significantly, especially in the light of the sector itself being under a cloud. We recommend writing calls at the highest available strikes. The 168 levels are a watershed for this scrip and any fall below this level will see a fresh bout of weakness for this counter.

Your call of action - 

• Investors / cash segment players - Delivery based investors are advised to exit from this counter and await lower levels.

• Aggressive F&O traders - Futures traders are advised to sell the December series below a price of 171 and maintain a stop loss of 176. Expect a target price of 162 in the near / medium term. Options traders can buy put options in the December series at a strike price of 170 and at a maximum premium of Rs 2

• Fixed income strategy - Sell the December 210 calls at a suggested premium of Rs 2 and above.

• Derivatives contract size - Market lot = 1000 shares. F&O margins approx Rs 30,000 ( margins are subject to change daily )

Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.