The Hindu Business Line : Bull onslaught

THE sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Bear domination on Monday is likely to neutralise the prevailing sentiment. Otherwise, the prevailing bullish sentiment is likely to continue with added strength.

Nifty futures recommendation: Initially, the near July contract lost around 10 points. Bears failed to capitalise on it as they yielded to bull pressure. The July contract moved within a band of 31 points registering an intra-day high of 1551.70. It closed for the week with a gain of 17 points with respect to the previous close.

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Bull domination during the day initiated the uptrend in July contract. The exit level for the initiated long position is placed slightly away from its current level. In the normal course of trading on Monday, this is unlikely to be triggered. Bearish trigger level for the July contract is placed far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Tata Steel, Reliance and Tata Motors were the top three traded counters in this segment on Friday. For those still holding long position in Infosys may do so with the stop loss placed at 1444.95.

Bear domination on Monday could be a threat to most of the uptrend counters in the list. Buying opportunities are likely to exist in M&M, Reliance and State Bank of India. Selling opportunities are likely to exist in Maruti, Reliance and State Bank. The best among the above is likely to be the buying in State Bank. Buy level for this counter is placed quite closer to its last traded value. Bull move on Monday has the potential to initiate the uptrend in State Bank.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains undisturbed. Except for Reliance and State Bank, all the other counters in the list are in the uptrend.

Except for SAIL and Tata Steel, all the counters in the list are likely to be under threat. Bulls are likely to have opportunity in Reliance and State Bank. Selling opportunities are likely to exist in Maruti and Reliance. Buying in Reliance is likely to be the best bet for Monday's trading. Bullish trigger level for this counter is placed within Rs 3 from its closing price. Bull pressure on Monday is likely to trigger the uptrend in Reliance.

(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 technical analyst and fund management consultant.