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Bull domination

K. Premkumar

WEDNESDAY'S trading activity witnessed a bull domination. Bears were unable to make any recovery during the day. However, the trend in the index remained sideways. The intra-day movement in the index was around 20 points. Bulls gained around 17 points f rom the day's trading. The market sentiment stands slightly in favour of the bulls.

The sideways trend in the index is likely to continue on Thursday. Both the bullish and bearish trigger levels are placed quite far off from the last traded value. A strong move on either side has the potential to initiate any of the respective levels. B ull domination would further strengthen the prevailing market sentiment. Bear domination would change the prevailing sentiment to bearish.

Index futures recommendation: The movement in the futures segment was range-bound. The nearby July future contract moved within a band of 11 points. It closed with a gain of around eight points with respect to Tuesday's close.

The exit and bearish trigger levels in both the target and non-target-based style of trading are placed at 1062.95. In the normal course of trading on Thursday, this is unlikely to be triggered.

Scrip recommendation: There were no new entries or exits to the top-20 tradable list. The ranking of the list underwent a few changes.

After Wednesday's market action, the sentiment reading of the tradable counters stands slightly in favour of the bulls. This is likely to be further strengthened, in case of bull domination on Thursday. On the contrary, it is likely to change bearish.

Bear domination on Thursday could be a threat to the following uptrend counters -- PentaMedia and Wipro. On the other hand, the downtrend in Reliance Industries, Saw Pipes and Silverline are likely to be under threat. Traders holding positions in these c ounters will have to closely watch their price movements.

For Thursday's trading, buying opportunities are likely to exist in Global Tele, Saw Pipes, Sathyam Computer, Silverline and State Bank of India. Selling opportunities for the bears are likely to exist in Global Tele and Wipro.

The best among the above is likely to be the buying in Sathyam Computer. The counter at present is in the sideways mode. Its buy trigger level is placed quite closer to its last traded value. Bull domination on Thursday has the potential to initiate a f resh uptrend in this counter.

(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.