The Hindu Business Line : Marginal gains

FRIDAY'S market action had a little impact on the tradable counters. Bulls were successful to the extent of reducing the bear count by a considerable margin. The sentiment reading of the tradable counters stands neutral. Bull pressure on Monday is likely to change the sentiment reading in their favour. Otherwise, it is likely to turn bearish.

Nifty futures recommendation: The January month contract opened around its previous close and made steady gains during the day's trading. Bears were unable to make any impact during the day. The December contract moved within a band of 28 points. It closed higher for the week with a gain of around 18 points.

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Bull domination during the day led to the initiation of the uptrend in the January contract. In the normal course of trading on Monday, the initiated long position is likely to continue. The exit and bearish trigger levels for the January contract are placed at a far away level.

Stock futures recommendation: The composition of the top-10 active counters list remains unchanged. The ranking of the list too remains the same with no major changes. The top three traded counters in this segment were Tata Steel, State Bank and Reliance.

Further bull pressure on Monday is likely to terminate the prevailing downtrend counters. On the other hand, the uptrend in Ranbaxy and State Bank are likely to be under threat. Bulls are likely to have opportunity in as much as eight counters. Selling opportunities are likely to exist in four counters. Buying in Infosys is likely to be the best bet for Monday's trading. Bullish trigger level for this counter is placed closer to its current level. Bull move on Monday is likely to trigger the uptrend in Infosys.

Cash segment: There were no new entries or exits to the top-10 tradable list. Bears were successful in initiating the downtrend in the recommended counter — Zee Tele.

Bull move on Monday could be a threat to most of the downtrend counters in the list. On the other hand, the two uptrend counters are likely to be terminated. Buying opportunities are likely to exist in seven counters. Selling opportunities are likely to exist in three counters. For Monday, the best is likely to be buying in Infosys. This counter is in the sideways mode. Buy level for this counter is placed around the closing price. Bull pressure on Monday is likely to trigger the uptrend in Infosys.

(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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