Financial Daily from THE HINDU group of publications
Saturday, Jan 08, 2005
Financial Daily from THE HINDU group of publications Saturday, Jan 08, 2005 |
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Markets
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Technical Analysis Bear run arrested K. Premkumar
BULLS were successful in arresting the two-day long bear run. However, they could not gain much from the day's trading. The sentiment reading of the tradable counters continues to remain bearish. Bull domination on Monday is likely to reduce the bear count by a considerable margin thereby resulting a change in the sentiment reading. Nifty futures recommendation: The January contract moved within a close range till the mid-session of Friday's trading. During the final hour of the day's trading, bulls were successful in breaching the band. The January contract registered an intra-day high of 2026.75 after making a low of 1990.15. It closed with a gain of 22 points with respect to Thursday's close. Friday's market action had no impact on the recommended levels. The exit and bullish trigger levels for the January contract are placed at the same level. In the normal course of trading on Monday, the short position is likely to continue. However, bull domination has the potential to reverse the downtrend in the January contract. Stock futures recommendation: The composition of the top-10 tradable list underwent a change. Ranbaxy gained entry with the exit of NTPC. Reliance moved to the top slot and Satyam moved to the fourth position. The exit level for the short position in NTPC is placed at Rs 86.60. Bull domination on Monday could be a threat to most of the downtrend counters in the list. On the other hand, the lone uptrend counter Reliance is likely to be terminated. Buying opportunities are likely to exist in six counters. A lone selling opportunity is likely to exist in Infosys. Buying in Ranbaxy is likely to be the best bet for Monday's trading. This counter is in the downtrend. The exit and bullish trigger levels for this counter is placed quite closer to its last traded value. Bull pressure on Monday is likely to initiate the uptrend in Ranbaxy. Cash segment: The composition as well as the ranking of the top-10 active counters list remain unchanged. Friday's market action resulted in triggering the uptrend in Reliance. Further bull pressure on Monday is likely to terminate most of the downtrend counters in the list. On the contrary, the lone uptrend counter Reliance is likely to be under threat. Bears are unlikely to have any opportunity for Monday's trading. Buying opportunities are likely to exist in four counters. The best for Monday's trading is likely to be the buying in State Bank. Bull move on Monday has the potential to reverse the prevailing downtrend in State Bank.
(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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