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Gains not held

K. Premkumar

ON Thursday, the bulls dominated the market in the initial hours. Later in the day, the bears trimmed the gains. The trend of the index continued to be in the sideways direction. The sentiment of scrips in the tradable list became almost totally bullish with all counters except one in the uptrend.

The current trend is likely to continue in the normal course of trading on Friday. In case of a strong bear move, there is a possibility of a fresh downtrend being initialised. The bull level is quiet far away and is unlikely to be triggered. The sentime nt is likely to remain the same favouring the bulls irrespective of a bull or bear domination. In case of a bear move, there is likely to be a slight decrease in value. There is unlikely to be any fresh buying or selling opportunities for Friday's tradin g.

Index Futures Recommendation: The long position in the target-based style of trading exited at a profit after the January futures contract hit the target in the initial hours of the day's trading. The long position in the non-target-based trading is stil l on with the stop-loss level placed in the danger zone. This position could run into rough weather if the bulls were to dominate during Friday's trading.

The trigger levels for playing on the short side are available for both styles of traders. These levels, however, are unlikely to be triggered during Friday's trading as they are placed far away from its current last traded value.

Scrip Recommendation: There is a slight change in the top-20 list. MTNL entered the list with the exit of Balaji Telefilms. There is also a slight change in the ranking of the top-20 list with Silverline occupying the 10 position and Digital occupying th e 11 position. The stop-loss for those holding positions in Ranbaxy and Balaji Telefilms is placed at Rs 663.55 and Rs 303 respectively.

The market sentiment became strongly bullish on Thursday with almost all the counters except Silverline in the uptrend. The sentiment is likely to remain the same irrespective of a bull or bear move on Friday. In case of a bear move, there is likely to b e a slight decline in value. This shows that a bear move on Friday may not be supported by the market sentiment.

There are 19 counters in the uptrend and one in the sideways trend. In case of a bear move on Friday, the price movement in ACC, L&T, ITC, Reliance and Vikas is to be watched closely since these counters are likely to exit.

Neither selling opportunities for the bears nor buying opportunities for the bulls are likely to exist on Friday. The sell and buy levels of the respective counters are placed quiet far away from their last traded values.

(Note: All price levels refer to the absolute value of the shares traded on the NSE. There is risk of loss in trading.)

The author is a Chennai-based technical analyst and fund management consultant.