Reliance Industries - This counter was advocated by us last week to cross the 400 mark. Buying was recommended above the 380 levels - and the trade has been highly profitable. The scrip has closed at a 30  month high. We re-iterate our view that this scrip is capable of leading the market rally from the front. The company has hiked product prices in the textile segment, it's infocom division has done well and declared excellent results. Since the counter has a high weightage on the indices, the counter is capable of swinging the markets significantly. The scrip is at it's April 2001 levels and is poised to test the 424 levels. We recommend a buy for the aggressive traders.

Your call of action - 

• Investors / cash segment players - Delivery based investors having squared up their long positions last week are advised to re-enter on the long side above the 425, keeping a stop loss at the 412 levels. Expect 444 levels in a conducive market. 

• Aggressive F&O traders - Buy the September futures (quoting at Rs 3 premium to cash ) at the 420 - 422 levels and hold with a 8 Rs stop loss and await 445 levels. Options players can buy the September calls at a strike price of 430 and at a premium of Rs 10 - 11.

• Fixed income strategy - sell the September puts at strikes of 360 at a premium of Rs 1.50 in small lots only.

• Derivatives contract size - Market lot = 600 shares / Margin approx Rs 42,000 ( margins are subject to change daily )