Back Bears hold sway
K. Premkumar
Chennai , April 28
BEARS extended further pressure over Thursday's trading activity. The sentiment reading of the tradable counters remains bearish with no up-trend counters.
Bull domination on Friday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bearish sentiment is likely to be further strengthened.
Nifty Futures Recommendation The May month contract opened with a bear gap of 28 points and went further down by another ten points. Later on, bulls managed to make a partial recovery. The May contract moved within a band of 19 points, registering an intra-day high of 1918.10. It closed with a loss of around 25 points over the previous close.
The short position in the expired April contract is likely to be closed out at 1941.30. Bearish trigger level for the May contract is placed quite close to the current level. Bear domination on Friday has the potential to initiate the downtrend in the May contract. Bullish trigger level is placed quite far away.
Stock Futures Recommendation The composition of the top-10 tradable list had few changes. ONGC and Union Bank gained entry with the exit of CNX-IT and IPCL. The ranking of the list had a total revamp. Tata Steel moved to the top slot, followed by Infosys and State Bank.
Most of the counters in the list are in the sideways mode. A bull move on Friday is likely to terminate the downtrend in ICICI Bank and Wipro. Buying opportunities are likely to exist in four counters. Selling opportunities are likely to exist in as much as eight counters.The best bet is likely to be buying in Satyam. The bullish trigger level for this counter is placed within two rupees from the last traded value. Bull pressure on Friday is likely to trigger the up-trend in Satyam.
Cash Segment The composition as well as the ranking of the top-10 active counters list remains unchanged. Thursday's market action resulted in triggering the downtrend in the recommended counter — State Bank.
For Friday, most of the prevailing downtrend counters in the list are likely to be under threat. Bulls are likely to have opportunities in six counters. Selling opportunities are likely to exist in three counters. Buying in Satyam is likely to be the best for Friday's trading. The buy level for this counter is placed quite close to the current level. A bull move on Friday is likely to initiate a fresh up-trend 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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