Back Sideways movement
K. Premkumar
TUESDAY'S trading activity witnessed range-bound movement. Bears were successful to the extent of reducing the bull count marginally. However, sentiment reading of the tradable counters remains bullish with no downtrend counters. Bear domination on Wednesday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.
Nifty futures recommendation: The January month contract opened with a bear gap of six points and lost another ten points during the day's trading. Bulls were not able to make any impact during the day's trading. The January contract moved within a close range of 15 points. It closed with a loss of nine points with respect to previous close.
The long position in the January contract remains intact. Bearish trigger level for the January contract has been moved higher. The exit and short entry levels are placed at the same level. However, these levels are still placed slightly away from its current level.
Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list remains the same with no major changes. The top three traded counters in this segment were Tata Steel, Reliance and NTPC. Tuesday. The exit level for the long position in ONGC is placed at 832.35.
For Wednesday, most of the counters in the list are likely to be under threat. Bears are likely to have opportunity in as much as eight counters. Buying opportunities are likely to exist in four counters. Selling in Infosys is likely to be the best for Wednesday's trading. This counter is in the sideways mode. Bear move on Wednesday has the potential to initiate the downtrend in Infosys.
Cash segment: The composition of the top-10 active counters list remains unchanged. The ranking of the list had a minor change. Tata Motors and Zee Tele interchanged their positions. The uptrend in ONGC is likely to be terminated at 825.90.
Bear move on Wednesday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in eight counters. A lone buying opportunity is likely to exist in Maruti. Selling in Infosys is likely to be the best bet for Wednesday's trading. Bearish trigger level for this counter is placed very near to its closing price. Bear pressure on Wednesday is likely to trigger the downtrend in Infosys.
(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.
© Copyright 2000 - 2009 The Hindu Business Line