B. Venkatesh

THE following strategies are based on Monday's trading in the derivatives segment on the NSE:

Canara Bank: The March futures contract closed at 200.50. The outlook appears positive. The upside target is 207.

Buy March futures. Initiate the position with protective stop at 196. Trail the stop to control the downside risk. The margin on the futures position is approximately 20 per cent of the contract value. The open interest position as a percentage of the market-wide limit is 95 per cent. The minimum order size is 1600 units. No alternative strategies are available, as options on the stock are not actively traded.

HCL Tech: The March futures contract closed at 354.25. The outlook appears positive. The upside price target is 362. Buy March futures. Initiate the position with protective stop at 348. Trail the stop to control the downside risk. The margin on the futures position is approximately 17 per cent of the contract value. The open interest position as a percentage of the market-wide limit is 82 per cent. The minimum order size is 1300 units. No alternative strategies are available, as options on the stock are not actively traded.

(The opinion expressed in this column is based on technical analysis. There is risk of loss in trading.)

(This article was published in the Business Line print edition dated March 29, 2005)
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