The Hindu Business Line : Bull domination

THE sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Irrespective of bull or bear domination on Monday, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The April month contract opened with a firm note and remained so throughout the day. It moved within a band of 39 points. Bulls capitalised the day's entire move. The April contract closed higher for the week with a strong bullish note.

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The exit level for the long position is locked-up with a nominal profit of 14 points. Bearish trigger level for the April contract is placed far and is unlikely to be triggered on Monday.

Stock futures recommendation: The composition of the top-10 tradable list underwent a change. Reliance gained entry with the exit of M&M. Satyam and Tata Power interchanged their positions. Trading activity in GAIL (India) was quite hectic on Friday with more than 11,500 trades. The exit level for the long position in M&M is placed at 468.15.

Bulls were successful in initiating the uptrend in the recommended counter-Tata Power. However, the exit level for the initiated position is in the danger zone. Buying opportunities are likely to exist in CNX IT and ONGC. A lone selling opportunity is likely to exist in CNX IT. The best bet for Monday's trading is likely to be ONGC. This counter has closed at 861.50. Its bullish trigger level is placed closer to this level. Bull move on Monday is likely to initiate the uptrend in this counter.

Cash segment: The top-10 tradable list in this segment underwent a change. HPCL gained entry with the exit of IPCL. The ranking of the list remains the same with no major changes. The uptrend in IPCL is likely to be terminated at 186.15.

Friday's market action resulted in triggering the uptrend in the recommended counter-Gail (India). All the counters in the list are in the uptrend.

Bear domination on Monday is likely to terminate the uptrend in HPCL, Infosys, Satyam and State Bank. Opportunities are likely to exist on the short side of Infosys and State Bank. Between the two, the best is likely to be Infosys. Its exit and bearish trigger levels are placed close to its last traded value. Bear pressure on Monday has the potential to reverse the prevailing trend 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.