Date:13/07/2006 URL: http://www.thehindubusinessline.com/2006/07/13/stories/2006071303561500.htm

Back Bull domination

K. Premkumar

Bulls dominated Wednesday's trading activity. The sentiment reading of the tradable counters changed to bullish. Bear move on Thursday is likely to neutralise the sentiment reading. On the other hand, prevailing sentiment reading is likely to be further strengthened with additional counters.

Nifty futures

The July month contract opened with a bull gap of around 5 points from Wednesday's close. The July contract moved with in a range of around 120 points making an intraday high of 3188. It closed with a gain of around 85 points from its previous close.

The long position in July contract exited and entered short in the morning session and the short position was neutralised during latter part of the day's trading.

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The long entry level is placed quite nearer to Wednesday's last traded price and bull move on Thursday is likely to initiate a fresh uptrend in July contract.

Stock futures

The composition and ranking of the top-10 tradable counters had minor changes. ACC moved out giving way to REL. Satyam, Infosys and Hindalco moved up while BHEL moved down in the ranking.

The top-3 tradable counters in this segment were Infosys, Reliance and Tata Steel.

All the counters in the top-10 tradable list are likely to be under threat for Thursday's trading. There are three opportunities on either side of the trading.

The best is likely to be buying in Bajaj Auto. This counter is in downtrend. Bull move on Thursday is likely to trigger the uptrend in this counter.

Cash segment

The composition of the top-10 tradable list had minor changes. SAIL gained entry in the place of L&T. The ranking of the list had no changes.

The exit level for L&T is placed at 2111.10.

All the downtrend and uptrend counters in the list are likely to be under threat for Thursday's trading.

There are each four opportunities on both sides of Thursday's trading. The best is likely to be buying in Tata Motors. This counter is in downtrend.

Bull move on Thursday is likely to reverse the prevailing trend in Tata motors.

(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.