The Hindu Business Line : Lacklustre movement

FRIDAY'S lacklustre movement resulted in initiating the downtrend in few tradable counters. However, the sentiment reading of the top-10 counters remains bullish. If bears were to take charge of Monday's trading, the sentiment reading is likely to change in their favour. On the contrary, the prevailing bullish sentiment is likely to continue with further strength.

Nifty futures recommendation: The July contract initially gained around 9 points and during the mid-session fell and registered an intra-day low of 1582.50. However, bulls recovered to end-up with some marginal gains. July contract closed four points above its Thursday's close.

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The day's move had no impact on the recommended levels. The exit and bearish trigger levels for the July contract remain unchanged.

Stock futures recommendation: The top-10 tradable counters in this segment remain unchanged. The ranking of the list had a minor change. M&M and Maruti interchanged their positions. For those still holding long position in Tata Power is placed at 265.45.

Bear pressure on Monday is likely to terminate the uptrend in CNX IT and Infosys. On the other hand, the downtrend in M&M, Maruti and Tata Motors are likely to be under threat. Four opportunities on either side are likely to exist for Monday's trading. Selling in Satyam is likely to be the best for Monday's trading. This counter is in the sideways mode. Bearish trigger level for this counter is placed within two rupees from its current level. Bear pressure on Monday is likely to trigger the downtrend in Satyam.

Cash segment: The composition as well as the ranking of the top-10 tradable list remains undisturbed. Bears were successful in initiating the downtrend in the recommended counter — Tata Motors.

Bull supremacy on Monday could be a threat to the downtrend in Maruti, ONGC and Tata Motors. On the contrary, the uptrend in Reliance and Tata Power is likely to be terminated. Bulls are likely to have opportunity in five counters. A lone selling opportunity is likely to exist in Punjab Bank. Buying in Tata Motors is likely to be the best bet for Monday's trading. This counter is in the downtrend and has closed at Rs 408.80. The exit and bullish trigger levels are placed quite closer to its current level. Bull domination on Monday has the potential to reverse the prevailing downtrend in Tata Motors.

(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.