Date:09/11/2005 URL: http://www.thehindubusinessline.com/2005/11/09/stories/2005110902171500.htm

Back Bull run extended

K. Premkumar

BULLS extended their domination over Tuesday's trading activity. The sentiment reading of the tradable counters continued to remain bullish. Bear domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened with additional counters.

Nifty futures recommendation: The November month contract opened with a bull gap of around 10 points. The November month contract moved with in a range of 49 points making an intraday high of 2496.85. It closed with a gain of around 36 points from its previous close.

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The long position in the November contract remains intact. The exit and sell levels for the November month contract are placed quite far away from the last traded price. These levels are unlikely to be triggered during Wednesday's trading.

Stock futures recommendation: The composition and the ranking of the top-10 tradable list had no changes. The top three tradable counters in this segment were State Bank, Tata Steel and Reliance.

There are no downtrend counters in the list. All the uptrend counters in the list are likely to be under threat for Wednesday's trading.

For Wednesday's trading, all the levels are placed quite far away. The nearest level for Wednesday's trading is likely to be the selling in State bank. Bear pressure on Wednesday is likely to initiate a fresh down trend in this counter.

Cash segment: The composition of the list had no changes. The ranking of the list had minor changes. Satyam and Reliance interchanged their positions. India Bulls occupied seventh position while Titan Industries moved down to ninth position in the top-10 tradable list.

For Wednesday's trading all the uptrend counters in the list are likely to be under threat. A lone down trend counter India Bulls is likely to be terminated. There are no buying opportunities for Wednesday's trading. Selling opportunities are likely to exist in three counters. The best for Wednesday's trading is likely to be selling in Reliance. This counter is in uptrend. Bear domination on Wednesday is likely to reverse the prevailing long position in this counter.

(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.