Back Bears prevail
K. Premkumar
BEARS prevailed over Thursday's trading activity. However, they could not gain much from the day's trading. The sentiment reading of the tradable counters remains strongly bearish with no uptrend counters. Bull domination on Monday is likely to reduce bear count by a considerable margin thereby resulting in a change in the sentiment reading.
Nifty futures recommendation: The near month March contract opened three points above its previous close and further went by another 13 points. Later on, bears took charge of the day's proceedings and wiped out their early losses.
The March contract moved within a band of 30 points. It closed at 2018 with a marginal change from the previous close.
Thursday's market action had no impact on the recommended levels. The exit and bullish trigger levels for the March contract remains around the same level. These levels are still placed far away from the current level and unlikely to be triggered on Monday.
Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a minor change. Andhra Bank and Reliance interchanged their positions.
All the counters in the list are in the downtrend. Most of the downtrend counters in the list are likely to be under threat. Bulls are likely to have opportunity in five counters.
The best bet is likely to be the buying in Reliance. The exit and buy levels for this counter is placed quite closer to the last traded value. Bull move on Monday has the potential to reverse the downtrend in Reliance.
Cash segment: The composition as well as the ranking of the top-10 tradable list remains unchanged. Bears were successful in initiating the downtrend in the recommended counter - Andhra Bank.
Except for Reliance, all the other counters in the list are in the downtrend mode. Bull move on Monday could be a threat to four of the prevailing downtrend counters.
Selling opportunities are unlikely to exist for Monday's trading.
Buying opportunities are likely to exist in Infosys, Reliance, Satyam and Tata Steel. The best among the above is likely to be Reliance.
This counter is in the sideways mode. Bullish trigger level for this counter is placed closer to the current level. Bull pressure on Monday is likely to trigger the uptrend in Reliance.
(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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