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Thursday, Jun 06, 2002

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Bull domination

K. Premkumar

BULLS were in total control of Wednesday's trading activity. Bears were unable to make any recovery during the day. The sentiment reading of the tradable counters changed in favour of the bulls. Bull domination on Thursday is likely to further strengthen the prevailing sentiment reading. On the contrary, the bull count is likely to be reduced by a considerable margin.

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Nifty futures recommendation: The near month June contract opened one point above previous close and went further by another 12 points. Bulls were in total command of the day's proceedings. The June contract closed with a gain of 9 points with respect to Tuesday's close.

The uptrend in the June contract was left undisturbed. The exit level for the long position is placed at break-even level. Bear move on Thursday is likely to terminate the uptrend. Bearish trigger level for the June contract remains unchanged.

Stock futures recommendation: The top-10 tradable list had some changes. Tata Engg and Tata Steel gained entry with the exit of State Bank and Sterlite Optical. HPCL moved to the second position followed by BPCL, Infosys, Reliance Industries and Digital. Those holding long positions in M&M, State Bank and Sterlite Optical may do so with the stop loss placed at Rs 88.75, Rs 223.20 and Rs 109.85 respectively.

Bear domination on Thursday is likely to terminate the uptrend in Digital, Ranbaxy and Reliance Industries. For Thursday, a lone opportunity is likely to exist on either side of trading. Hindustan Petro on the long side and Digital on the down side.

Buying in Hindustan Petro is likely to be the best bet for Thursday's trading. The counter is in the downtrend. Its exit and bullish trigger levels are placed quite closer to its current level. Bull domination on Thursday has the potential to reverse the prevailing downtrend in the counter.

Cash segment: Rolta and Zee Tele regained entry to the top-10 tradable list with the exit of Geometric Soft and SSIL. Satyam moved to the top position followed by Rolta, Polaris Soft and GTL. The exit level for the long position in IPCL and SSIL are placed at Rs 152.75 and Rs 143.95 respectively.

Except for the uptrend in Zee Tele all the other counters in the list are likely to be safe. Bears are unlikely to have any opportunity for Thursday's trading. Buying opportunities are likely to exist in Digital and Polaris Soft. Between the two, the best is likely to be in Polaris Soft. Its buy level is placed closer to its last traded price. Bull pressure on Thursday is likely to trigger this level.

(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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