Back Bulls prevail
K. Premkumar
THE bulls extended their pressure over Friday's trading activity. The bears had no opportunity for the second successive trading day.
The sentiment reading of the tradable counters remains strongly bullish with no downtrend counters. Bear domination on Monday has the potential to change the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.
Nifty futures recommendation: The March contract opened around its previous close and lost around seven points during the initial hour of the day's trading.
The bulls later gained control and wiped out their early losses. The March contract moved within a band of 24 points. It closed higher with a gain of 12 points over Thursday's close.
The uptrend in the March contract remains undisturbed. The exit and bearish trigger levels for the March contract are still placed quite far away. In the normal course of trading on Monday, these levels are unlikely to be triggered.
Stock futures recommendation: The composition, as well as the ranking, of the top-10 tradable list remains unchanged. The top three traded counters in this segment were Reliance, Satyam and State Bank.
Bear move on Monday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in six counters. Buying opportunities are likely to exist in two counters.
Selling in Tata Steel is likely to be the best for Monday's trading. This counter is in the sideways mode. Bearish trigger level for this counter is placed very close to the current level. Bear pressure on Monday is likely to trigger the downtrend in Tata Steel.
Cash segment: There were no new entries in the top-10 tradable list. The ranking of the list had some changes. Reliance moved to the third position followed by SAIL and Tata Steel.
All the counters in the list are in the uptrend. Bear pressure on Monday could be a threat to most of the counters in the list.
For Monday, opportunities are likely to exist in six counters.
The best bet is likely to be the selling in Satyam. The exit and sell levels for this counter is placed quite closer to the last traded price. Bear move on Monday has the potential to reverse the prevailing uptrend in Satyam.
(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.
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