Back Bull run continues
K. Premkumar
BULLS continued to dominate over Friday's trading activity. The sentiment reading of the tradable counters remains strongly bullish. Bear domination on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.
Nifty futures recommendation: The November month contract opened with a bull gap of around 6 points and went up further by around 21 points. The November month contract moved with in a range of 23 points making an intra-day high of 2635.70. It closed with a gain of 9 points from its previous close.
The long position in the November contract remains intact. The exit and sell levels for the November month contract is placed quite far away. In the normal course of trading on Monday these levels are unlikely to be triggered.
Stock futures recommendation: The composition and ranking of the top-10 tradable list had minor changes. Maruti went out of the top-10 tradable list and gave way for Reliance Capital. Tata Motors and IPCL interchanged their positions. ONGC moved up to eighth position from 10th position. The exit levels for Maruti and Ranbaxy are placed at 591.35 and 394.95 respectively. The top three tradable counters in this segment were Reliance Capital, Tata Steel and Reliance.
All the uptrend counters in the list are likely to be under threat for Monday's trading. A lone downtrend counter — Satyam — is likely to be terminated. A lone buying opportunity is likely to exist in Satyam. Selling opportunities are likely to exist in three counters in the list. The best for the Monday is likely to be selling in IPCL. Bear pressure on Monday is likely to reverse the prevailing trend in this counter.
Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. While Sesa Goa went out of the list, VSNL got in to the list. Reliance Capital moved up to third position and State Bank moved down to fourth position. The exit levels for the uptrend in Tata Steel and Sesa Goa are placed at 368.15 and 982.50 respectively.
All the uptrend counters in the list are likely to be terminated during Monday's trading. A lone buying opportunity is likely to exist in Satyam. Selling opportunities are likely to exist in four counters in the list. The best for Monday's trading is likely to be the selling in Infosys. This counter is in uptrend. Bear pressure on Monday is likely to reverse the prevailing trend 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.
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