Financial Daily from THE HINDU group of publications
Tuesday, Jan 04, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jan 04, 2005 |
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Markets
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Technical Analysis Bull domination K. Premkumar
BULLS were in total control of Monday's trading activity. The sentiment reading of the tradable counters stands strongly bullish. Bear domination on Tuesday has the potential to reduce the bull count by a substantial margin thereby resulting a change in the sentiment reading. Nifty futures recommendation: The near month January contract opened with a bull gap of five points and made steady gains during the day's trading. Bull domination during the day left the bears totally stranded. The January contract moved within a band of 31 points. It closed with a gain of 34 points with respect to Friday's close. The long position in the January contract is out of the danger zone. The position is locked-up with a nominal profit of 6 points. The exit and bearish trigger levels for the January contract are placed far away. In the normal course of trading on Tuesday, these levels are unlikely to be triggered. Stock futures recommendation: The top-10 tradable list underwent a change. NTPC gained entry with the exit of ONGC. The ranking of the list had a few changes. Trading activity in IPCL was quite hectic on Tuesday. The exit level for the long position in ONGC is placed at Rs 823.85. None of the counters in the list is in the downtrend. Bear domination on Tuesday could be a threat to most of the uptrend counters in the list. Selling opportunities are likely to exist in four counters. A lone buying opportunity is likely to exist in Satyam. Buying in Satyam is likely to be the best bet for Tuesday's trading. Buy level for this counter is placed very close to its last traded value. Bull pressure on Tuesday is likely to trigger the uptrend in Satyam. Cash segment: The composition of the active counters list had a change. Canara Bank gained entry with the exit of ONGC. The ranking of the list had some changes. State Bank moved to the second position and Maruti moved to the fifth position. The uptrend in ONGC is likely to be terminated at Rs 817.30. Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter Zee Tele is likely to be under threat. Bulls are likely to have opportunity in Satyam and Zee Tele. Selling opportunities are likely to exist in Infosys, Maruti and Tata Steel. The best among the above is likely to be the buying in Satyam. Bullish trigger level for this counter is placed quite closer to its current level. Bull move on Tuesday 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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