Date:31/12/2005 URL: http://www.thehindubusinessline.com/2005/12/31/stories/2005123102891300.htm

Back Bulls prevail

K. Premkumar

BULLS prevailed over Friday's trading activity. The sentiment reading of the tradable counters remains 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 December month contract opened with a bull gap of around 3 points. The December month contract moved within a range of around 40 points making an intra-day high of 2836.70. It closed with a gain of around 10 points from its previous close.

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The January month contract entered a fresh long position in the morning session. The exit and sell levels are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Monday's trading.

Stock futures recommendation: The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Ranbaxy moved up to first position and Tata Steel moved down to fifth position. The top three tradable counters in this segment were State Bank, Reliance and Reliance Capital.

All the uptrend counters in the top-10 tradable list are under threat for Monday's trading. There are no downtrend counters in the list. There are four opportunities on the buy side and ample opportunities on sell side. The best for Friday's trading is likely to be selling in ONGC. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh downtrend 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 and Reliance Capital interchanged their positions.

There are no downtrend counters in the list. All the uptrend counters in the top-10 tradable list are likely to be terminated during Monday's trading. There are three opportunities on the buy side and ample opportunities on sell side. The best is likely to be buying in Satyam. This counter is in sideways mode. Bull pressure on Monday 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.