Financial Daily from THE HINDU group of publications
Saturday, Nov 06, 2004

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Markets - Technical Analysis

Bears prevail

K. Premkumar

FRIDAY'S trading activity resulted in reducing the bull count by a considerable margin. The sentiment reading of the tradable counters stands mildly bullish. Bear pressure on Monday is likely to change the sentiment reading in their favour. On the other hand, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The near month November contract opened with a bull gap of around seven points and made steady gains during the day's trading. Bears were unable to make any impact during the day's trading. The November contract moved within a band of 18 points. It closed with a gain of 21 points above its previous close.

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The uptrend in the November contract remains intact. The exit and bearish trigger level for the November contract are placed slightly away from its current level. In the normal course of trading on Monday, these levels are unlikely to be triggered.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains undisturbed.

Except for Reliance, all the other counters in the list are in the uptrend. Bear move on Monday could be a threat to the prevailing uptrend counters in the list. On the contrary, the lone downtrend counter - Tata Motors is likely to be terminated. For Monday, six opportunities are likely to exist on either side of trading. Buying in Tata Motors is likely to be the best bet for Monday's trading. The exit and bullish trigger levels for this counter is placed very close to its last traded value. Bull pressure on Monday is likely to reverse the prevailing downtrend in Tata Motors.

Cash segment: Friday's market action had no impact on the recommended counter - Reliance. Bull pressure on Monday is likely to terminate most of the prevailing uptrend counters in the list. On the other hand, the downtrend in SAIL and Tata Motors are likely to be under threat.

Buying opportunities are likely to exist in three counters. Selling opportunities are likely to exist in six counters. The best is likely to be the buying in Satyam. This counter is in the sideways mode. Bull move on Monday has the potential to trigger the uptrend 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.

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