Date:14/12/2005 URL: http://www.thehindubusinessline.com/2005/12/14/stories/2005121402891500.htm

Back Bulls prevail

K. Premkumar

THE sentiment reading of the tradable counters remains 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: The December contract opened with a bear gap of around seven points and went down by another four points. However, bears could not capitalise on initial momentum and gave way to bull. It moved within a range of around 48 points making an all-time high of 2806.95. It closed with a gain of around 36 points from its previous close.

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The long position on December contract remains intact. The exit and sell levels are placed quite far away. These levels are unlikely to be triggered on Wednesday's trading.

Stock futures: The composition and ranking of the top-10 tradable list had no changes. The long exit level for ONGC is placed at 1102.35. The top three tradable counters in this segment were Tata Motors, State Bank and Tata Steel.

There are no downtrend counters in the list. All the uptrend counters in the top 10 tradable list are likely to be under threat for Wednesday's trading. There are ample opportunities on the sell side. On the other a lone buying opportunity exist in Reliance. The best for Wednesday's trading is likely to be buying in Reliance. This counter is in sideways mode. Bull move on Wednesday is likely to initiate a fresh up trend in this counter.

Cash segment: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance Capital and Reliance interchanged their positions. Infosys moved up to second position and Titan moved down to seventh position. The exit levels for Sesa Goa, Bharti-Tele and India Bulls are placed at 1109.95, 346.95 and 162.05, respectively.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Wednesday's trading. On the other hand, both the downtrend counters in the list are likely to be terminated. There are four opportunities on the buy side and three opportunities on the sell side for Wednesday's trading. The best for Wednesday's trading is likely to be buying in Reliance. This counter is in side ways mode. Bull pressure on Wednesday is likely to initiate a fresh uptrend 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.