Date:26/06/2004 URL: http://www.thehindubusinessline.com/2004/06/26/stories/2004062602371500.htm

Back Bull domination

K. Premkumar

THE sentiment reading of tradable counters stands bullish. Bear domination on Monday is likely to reduce the bull count to a bare minimum, thereby neutralising the sentiment reading. Otherwise, the prevailing bullish sentiment may continue with added strength.

Nifty Futures recommendation: During the initial hour of Friday's trading, the July contract lost around 6 points. Later, the bulls took charge of the day's trading. The July contract registered an intra-day high of 1473.95 after touching a low of 1444.00. It closed with a gain of 17 points over Thursday's close.

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Bull domination during the day initiated the uptrend in the July contract. In the normal course of trading on Monday, the initiated uptrend is likely to continue. However, bear domination could terminate the uptrend in the contract. The bearish trigger level for the July contract is placed far away from its current level.

Stock Futures recommendation: There were no changes in the top-10 tradable list. However, the ranking of the list was slightly altered, with State Bank and Tata Motors interchanging positions.

None of the counters in the list is in the downtrend. Except for Tata Steel, all the other counters in the list are likely to be under threat. Buying opportunities may exist in Tata Motors and Tata Power. A sole selling opportunity is likely in ONGC. The best among the given may be the buying in Tata Power. The bullish trigger level for this counter is placed within Rs 2 from its last traded value. Bull pressure on Monday is likely to trigger this level.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains intact. The bulls were successful in triggering the uptrend in the recommended counter, Maruti.

Bear pressure on Monday is likely to terminate the uptrend in Infosys, Maruti, Reliance and Satyam. On the other hand, the downtrend in State Bank is likely to be under threat. Bulls may have opportunities in five counters. A lone selling opportunity is likely in Canara Bank. Buying in Tata Power may be the best bet for Monday's trading. The buy level for this counter is placed closer to its current level. A bull move on Monday is likely to initiate a fresh uptrend in Tata Power.

(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 technical analyst and fund management consultant.