Financial Daily from THE HINDU group of publications
Tuesday, Jan 11, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jan 11, 2005 |
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Markets
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Technical Analysis Bear domination K. Premkumar
BEARS gained control of Monday's trading activity. The sentiment reading of the tradable counters stands bearish. Bear pressure on Tuesday is likely to turn the sentiment reading to extremely bearish. On the contrary, the sentiment reading is likely to be neutralised. Nifty futures recommendation: During the open, the January contract gained eight points. Bulls failed to capitalise on it as they yielded to bear pressure. The January contract moved within a band of 54 points. It closed lower with a loss of around 44 points with respect to previous close. The short position in the January contract remains intact. The short position is locked-up with a profit of 43 points. The exit and bullish trigger levels for the January contract are still placed far away. These levels are unlikely to be triggered on Tuesday. Stock futures recommendation: The composition as well as the ranking of the top-10 active counters list remains unchanged. The top three traded counters in this segment were Reliance, State Bank and Tata Steel. For those still holding short position in NTPC may do so with the stop loss placed at 86.60. Except for the uptrend in Reliance, all the other counters in the list are likely to be under threat. Bulls are unlikely to have any opportunity for Tuesday's trading. Selling opportunities are likely to exist in Reliance, State Bank and Tata Motors. The best among the above is likely to be Tata Motors. Sell level for this counter is placed just below its last traded value. Bear pressure on Tuesday is likely to trigger the downtrend in Tata Motors. Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Infosys moved to the sixth position followed by Canara Bank and Tata Motors. Further bear pressure on Tuesday could be a threat to the prevailing uptrend counters in the list. On the other hand, the downtrend in Zee Tele is likely to be terminated. Traders are left with opportunities only on the short side for Tuesday's trading. The best bet is likely to be the selling in Infosys. This counter is in the sideways mode. Bear move on Tuesday has the potential to initiate the downtrend 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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