Date:28/07/2004 URL: http://www.thehindubusinessline.com/2004/07/28/stories/2004072801831500.htm

Back Bullish sentiment prevails

K. Premkumar

THOUGH the market fell on Tuesday but that was not enough to change the sentiment reading of the top-10 tradeable counters. The sentiment reading of the tradeable counters continues to remain bullish. Bear domination on Wednesday is likely to change the sentiment reading in their favour. Mild bear pressure on Wednesday may neutralise the prevailing sentiment reading.

Nifty futures recommendation: During the open of Tuesday's trading, the July contract gained seven points. Later on bears took charge of the day's proceedings. The July contract moved within a band of 26 points registering an intra-day low of 1594.30. It closed lower with a loss of 15 points.

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The long position in the July contract remains intact. The position is locked up with a profit of 23 points. The exit level for the long position is placed very close to its last traded value. Bear pressure on Wednesday is likely to terminate the uptrend in the July contract.

Stock futures recommendation: The composition and the ranking of the top-10 active counters remains undisturbed. Trading activity in Reliance was quite hectic on Tuesday with more than 22,400 trades.

Except for the uptrend in Reliance and the downtrend in State Bank, all the counters in the list are likely to be under threat. Selling opportunities are likely to exist in as much as seven counters. Buying opportunities are likely to exist in three counters. Selling in M&M is likely to be the best bet for Wednesday's trading. This counter is in the sideways mode. Sell level for this counter is placed quite closer to its current level. Bear move on Wednesday is likely to trigger the downtrend in M&M.

Cash segment: There were no new entries or exits to the top-10 tradeable list. The ranking of the list too remains unchanged. Bulls were successful in initiating the uptrend in the recommended counter-ONGC.

Bear domination on Wednesday is likely to terminate most of the uptrend counters in the tradable list. The lone downtrend counter-State Bank is likely to be safe. Bears are likely to have opportunity in four counters. A lone buying opportunity is likely to exist in Satyam. Selling in M&M is likely to be the best for Wednesday's trading. Bearish trigger level for this counter is placed within three rupees from its last traded price. Bear pressure on Wednesday is likely to initiate the downtrend in M&M.

(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.