Financial Daily from THE HINDU group of publications
Thursday, Apr 03, 2003
Financial Daily from THE HINDU group of publications Thursday, Apr 03, 2003 |
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Markets
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Technical Analysis Bulls march ahead K. Premkumar
BULLS prevailed during Wednesday's trading activity. Bears were unable to impede the bull move during the day. The market sentiment reading of the tradable counters turned bullish. Bear domination on Thursday is likely to reverse the prevailing sentiment reading. On the other hand, the bull sentiment is likely to continue. Nifty futures recommendation: The near month April contract opened with a bull gap of around 3 points and went further up by another 15 points. Bears could not make much impact during the day's trading. The April contract closed higher with a gain of 14 points with respect to previous close. Bull move during the day led to the reversal of short position in the April contract. Short position exited with a marginal gain of around 5 points. Bear domination on Thursday is likely to terminate the long position. Its sell level is placed quite far away and is unlikely to be triggered during the course of Thursday's trading. Stock futures recommendation: The composition of list remains same while the ranking underwent a few changes. Digital moved up to the third position while State Bank moved down to the seventh. Tata Steel and Hindustan Petro moved up to fifth and sixth positions respectively. The top three traded counters in this segment were Satyam Computer, Digital and Infosys. Except for Digital, all the downtrend counters in the list are likely to be under threat. However, bear domination on Thursday could pose threat to all the uptrend counters in the list. Bulls are likely to have opportunity in as much as five counters. Selling opportunities are likely to exist in Reliance Industries and Tata steel. The best bet for Thursday's trading is likely to be the buying in Infosys. Its exit and bullish trigger levels are placed closer to its current level. Bull move on Thursday is likely to trigger these levels. Cash segment: The composition as well as ranking of the list remain unchanged. Bull pressure during the day led to the uptrend in majority of the counters. Bull pressure on Thursday can be a threat to the downtrend in Satyam Computer. Reliance Industries is the only counter that faces threat in case of bear domination on Thursday. Buying opportunities are likely to exist in Hughes Software, Infosys and Satyam Computer. Any selling opportunities are unlikely to come up on Thursday. The best is likely to be buying in Infosys. Its buy level is placed very close to its last traded price. Bull pressure on Thursday is likely to initiate the uptrend 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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