Financial Daily from THE HINDU group of publications
Wednesday, Dec 17, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 17, 2003 |
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Markets
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Technical Analysis Bears prevail K. Premkumar
TUESDAY'S market witnessed intense tug of war between bulls and bears. Bears managed to prevail over the bulls towards the end of the day. The sentiment reading of the tradable counters stands mildly bullish. Bear domination on Wednesday is likely to turn the sentiment reading in its favour. On the contrary, the sentiment reading is likely to remain same. Nifty futures recommendation: Market opened with a bearish gap of around 7 points. It then moved down by another 17 points. Even though bulls made a come back by moving 8 points higher from the open, it could not sustain till the close of the day. The intra-day movement was around 25 points. It closed lower with a loss of around 3 points from Monday's close. The uptrend in December contract remained undisturbed. In the normal course of trading on Wednesday it is unlikely to be terminated. Both the exit and bearish levels are placed quite far away. Stock futures recommendation: The composition of the top-10 tradable list had a minor change. State Bank gained entry in place of M&M. Ranking of the list had a minor change. Infosys moved up to eighth place while State Bank occupied ninth position. All the uptrend counters in the list are likely to be under threat for Wednesday. Bull pressure on Wednesday is likely to terminate downtrend in Maruti. Reliance Industries, State Bank and Tata Engg are likely to be the buying opportunities for Wednesday. Selling opportunities are likely o exist in almost five counters in the tradable list. The best among the above is likely to be buying in Reliance Industries. Its buy level is placed quite nearer to its last traded price. Bull move on Wednesday is likely to initiate fresh uptrend in the counter. Cash segment: The composition of the top-10 tradable list remained unchanged. The ranking of the tradable list had one change. Digital and Maruti interchanged their rankings. Reliance Industries, Satyam Computer and Tata Steel are likely to be under threat for Wednesday. Further bull pressure on Wednesday is likely to terminate the lone downtrend counter Maruti. Digital and Reliance Industries are likely to have buying opportunities for Tuesday. Bearish opportunities are likely to exist in around six counters in the list. Buying opportunities are likely o exist in Infosys, Maruti, Polaris and Tata Engg. The best is likely to be buying in Infosys. It is in sideways mode. Its buy level is quite nearer to its last traded price. Bull pressure on Wednesday is likely to initiate a fresh 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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