Financial Daily from THE HINDU group of publications
Thursday, Nov 20, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 20, 2003 |
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Markets
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Technical Analysis Bear onslaught K. Premkumar
BEARS were in total command of Wednesday's trading, leaving the bulls stranded. Wednesday's market action terminated the uptrend counters in the tradable list. The market sentiment reading of the tradable counters stands mildly bearish, with no uptrend counters. Bear domination on Thursday is likely to strengthen the prevailing bearish sentiment reading. Nifty Futures recommendation: The near-month November contract opened with a bear gap of 3 points and went further by another 30 points. Bears capitalised the day's entire move, leaving the bulls with no opportunity to recover. The November contract closed with a loss of 29 points with respect to the previous close. Bear domination during the day terminated the uptrend in the November contract. The long trade exited with a loss of 23 points. The bearish trigger level for the November contract is now placed closer to its current level. Bear move on Thursday is likely to initiate the downtrend. Stock Futures recommendation: There were no new entries to or exits from the top-10 tradable list. The ranking of the list was altered, with State Bank and Tata Power interchanging positions. The top-three traded counters in this segment were Satyam Computer, Reliance Industries and Tata Motors. All the counters in the list are in the sideways mode. Bear pressure prevailing in the market has placed the buy levels for all the counters at a faraway level. Bears are left with ample opportunities for Thursday's trading. The best bet is likely to be the selling in M&M. Its sell level is placed very close to its last traded price. Bear pressure on Thursday may trigger this level. Cash segment: The composition as well as the ranking of the top-10 tradable list remain intact. The uptrend in Digital is likely to be terminated at Rs 562.75. Most of the counters in the list are in the downtrend. For Thursday, the downtrend in Infosys, Reliance Industries, Satyam Computer and State Bank may be threatened. Buying opportunities are unlikely to exist for Thursday's trading. Selling opportunities are likely in ACC, Tata Motors and Tata Steel. The best is likely to be Tata Steel. Its bearish trigger lever is placed closer to its current level. Bear domination on Thursday 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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