TRADING RECOMMENDATIONS For 1st June.

Essar Oil Ltd. CMP— Rs 131.30  We recommend going long in this counter at current levels.

Technical Outlook:-
The most important observation to be made on the weekly charts of Essar Oil Ltd. is that the share price action of the stock since 19th Nov, 2010 has taken the shape of an inverted Head and shoulders pattern. We would like to point out that this price pattern is one of the most acclaimed bullish reversal price patterns and has positive implications on the share movements of a stock.

Yesterday’s close has also taken the stock above its key long term moving average. The RSI indicator of the stock has also given a buy signal.

Suggested Trading Strategy:-
We recommend traders to buy between Rs 130—Rs 131.50 levels with a stop loss placed below Rs 126.40 levels for targets of Rs 135 – Rs 138 levels, expected to be achieved over the coming 3-4 sessions.

TRADING RECOMMENDATIONS For 31st May

GMDC Ltd. CMP— Rs 145.30
We recommend going long in this counter at current levels.

Technical Outlook:-
The share price of GMDC has registered a breakout from its resistance levels of Rs 145. The overall technical setup remains positive.
We believe that the share price could enjoy good upside momentum in the short term and test levels of Rs 151- Rs 153. The stock is also sustaining above its near term and short term moving average clusters which is also a sign of strength in the counter. The momentum indicators of the stock are also in buy mode.

Suggested Trading Strategy:-
We recommend traders to buy 50% now and again in the range of Rs 143 – Rs 144 levels with a stop loss placed below Rs 141.40 levels for targets of Rs 150 – Rs 155 levels, expected to be achieved over the coming 3-4 sessions.

TRADING RECOMMENDATIONS For 26Th May

OFSS Ltd. CMP— Rs 2212.05
We recommend going long in this counter at current levels.

Technical Outlook:-
The most important observation to be made on the daily charts of OFSS is that the share price has given a breakout from a
pennant formation, which is a continuation pattern and suggests the stock has gained momentum for a fresh up move after
consolidating for the past few sessions of trade. The momentum indicators of the stock are still bullish zone and indicate strength
in the current up-move. We believe that the stock price could test the level of Rs 2280- Rs 2350 levels in near future.

Suggested Trading Strategy:-
Hence we recommend buying 50% at current levels and again between Rs 2180--Rs 2160 levels with a stop loss placed below
Rs 2138.70 levels for the targets of Rs 2280 and/or Rs 2350 levels, expected to be achieved over the upcoming 2-3 sessions of trade.

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