Financial Daily from THE HINDU group of publications
Tuesday, Feb 26, 2002

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Markets - Technical Analysis

Restricted movement

K. Premkumar

MONDAY'S market witnessed restricted movement. Neither the bulls nor the bears could gain much from the day's trading. Most counters in the tradable list are in the sideways mode. In the normal course of trading on Tuesday, the prevailing sentiment is likely to continue. Bull domination is likely to change the sentiment mildly in their favour.

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Nifty futures recommendation: During the open of Monday's trading, February contract lost around 12 points. Bulls made an instant recovery and recouped most of their losses. The February contract closed with a marginal loss of 2 points with respect to Friday's close.

The day's move had no impact on the recommended levels. The long position in the February contract is locked-up with a decent profit of around 60 points. Bear domination on Tuesday is likely to terminate the prevailing uptrend. Its exit level is placed 9 points below its closing value. Bearish trigger level remains unchanged.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable counters. The ranking of the list too remained intact. Satyam Computer continues to dominate the trading activity followed by Hindustan Petro and Infosys.

Bear domination on Tuesday is likely to be a threat to the uptrend in BHEL. On the other hand, the downtrend in MTNL is likely to be under threat. Bulls are likely to have opportunity in Digital, Hindustan Petro, Reliance Industries, Satyam Computer and State Bank. Selling opportunities are likely to exist in BHEL, BPCL, Digital, Reliance Industries and State Bank. The best among them is likely to be the buying in Hindustan Petro. Its buy level is placed closer to its closing price. Bull move on Tuesday is likely to initiate the uptrend in this counter.

Cash segment: The composition of the top-10 tradable counters in the cash segment underwent a change. VisualSoft gained entry with the exit of Polaris Soft. The ranking of the list had a change. IBP Co and HCL Tech interchanged their positions. The exit level for the downtrend in Polaris Soft is placed at Rs 191.05.

For Tuesday, the uptrend in Wipro and the downtrend in GTL are likely to be under threat. Selling opportunities are likely to exist in Infosys, IBP Co and Wipro. Buying opportunities are likely to exist in Digital, IBP Co and Satyam Computer. Selling in IBP Co is likely to be the best for Tuesday's trading. This counter is in the sideways mode. Its bearish trigger level is placed quite closer to its last traded price. Bear pressure on Tuesday is likely to initiate a fresh downtrend 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 Chennai-based technical analyst and fund management consultant.

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