Financial Daily from THE HINDU group of publications
Tuesday, Feb 25, 2003

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Markets - Technical Analysis

Restricted movement

K. Premkumar

FOR the second successive trading day on Monday, the market witnessed narrow movement. Prices of the tradable counters moved within a close band. The market sentiment reading of the tradable counters continues to remain neutral. Bear domination on Tuesday is likely to change the sentiment reading in its favour. On the other hand, the sentiment reading is likely to turn bullish.

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Nifty futures recommendation: February month contract opened two points above the previous close and went further by another 5 points. During the close, bears managed to make a partial recovery. February contract closed with a marginal gain of 3 points over Friday's close.

Bull move during the day led to the initiation of the uptrend in the February contract. The exit level for the initiated long position is placed just one point below its last traded value. Bearish trigger level for the February contract is also placed quite closer to its current level. Bear domination on Tuesday has the potential to reverse the uptrend in the February contract.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Tata Steel moved to the seventh position followed by Tata Engg and MTNL. The top three traded counters in this segment were Reliance Industries, Satyam Computer, and State Bank.

For those still holding long position in ACC may do so with the stop loss placed at Rs 153.65.

None of the counters in the list is in the downtrend. Bear domination on Tuesday could be a threat to the prevailing uptrend counters. Selling opportunities are likely to exist in six counters. Buying opportunities are likely to exist in Satyam Computer and Tata Steel.

The best bet for Tuesday's trading is likely to be the selling in Infosys. Its bearish trigger level is placed very close to its last traded price. Bear pressure on Tuesday is likely to initiate the downtrend in the counter.

Cash segment: The composition of the top-10 tradable list in this segment remains unchanged. The ranking of the list underwent a change. Hexaware and Mastek interchanged their positions.

The uptrend in Hindustan Petro is likely to be terminated at Rs 311.20.

Bear domination on Tuesday is likely to terminate the uptrend in Reliance Industries and Satyam Computer. The prevailing downtrend counters are likely to be safe. There is unlikely to exist any buying opportunities for Tuesday's trading. Bears are likely to have opportunity in as much as six counters.

Selling in Mastek is likely to be the best for Tuesday's trading. Its sell level is placed closer to its current level. Bear move on Tuesday is likely to initiate a fresh downtrend in the 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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