The Hindu Business Line : Bulls march ahead

Bear domination on Saturday is likely to terminate most of the uptrend counters in the tradable list thereby changing the sentiment reading to bearish. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

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Nifty futures recommendation: The October month contract opened three points below its previous close and went further down by another 10 points. Bears failed to capitalise on it as they succumbed to bull pressure. The October contract moved within a band of 17 points. It closed with a marginal gain of 3 points with respect to its previous close.

The long position in the October contract remains undisturbed. It is locked up with a decent profit of 19 points. Bear domination on Saturday has the potential to terminate the uptrend in the October contract. Bearish trigger level for the October contract is placed quite far away.

Stock futures recommendation: The composition and the ranking of the top-10 tradable counters remain unchanged. Tata Steel, Reliance and State Bank were the top three traded counters in this segment for Friday.

Bear domination on Saturday could be a threat to most of the uptrend counters in the list.

On the other hand, the downtrend in Maruti and Ranbaxy is likely to be terminated.

Selling opportunities are likely to exist in six counters. Buying opportunities are likely to exist in four counters. Selling in Tata Motors is likely to be the best for Saturday's trading. Bearish trigger level for this counter is placed within Rs 2 from its last traded value. Bear pressure on Saturday is likely to initiate a fresh downtrend in this counter.

Cash segment: There were no new entries or exits to the top-10 tradable list in this segment. The ranking of the list too remains unchanged. Friday's market action resulted in initiating the uptrend in the recommended counter - Infosys.

Bear move on Saturday is likely to terminate the prevailing uptrend counters in the list. On the contrary, the downtrend in Maruti and Tata Motors is likely to be under threat. For Saturday, three opportunities are likely to exist on either side of trading. Selling in Satyam is likely to be the best bet for Saturday's trading. This counter is in the sideways mode. Bear domination on Saturday has the potential to trigger the downtrend in Satyam.

(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.