Financial Daily from THE HINDU group of publications
Friday, Jan 28, 2005
Financial Daily from THE HINDU group of publications Friday, Jan 28, 2005 |
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Markets
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Technical Analysis Bull onslaught K. Premkumar
BULLS extended their pressure over Thursday's trading. The sentiment reading of the tradable counters remains bullish. Bear domination on Friday is likely to reduce the bull count by a considerable margin thereby neutralising the sentiment reading. On the other hand, the prevailing bullish sentiment is likely to turn extremely bullish. Nifty futures recommendation: The February month contract opened three points above its previous close. Bulls were in total control as they made steady gains during the day's trading. The February contract moved within a band of 28 points. It closed higher for the second successive trading day with a gain of around 29 points. The sideways trend in the February contract remains intact. Entry levels for both long and short are placed at a far away level. These levels are unlikely to be triggered on Friday. Stock futures recommendation: The composition of the top-10 tradable list underwent a change. ACC gained entry with the exit of Ranbaxy. Tata Motors moved to the fifth position followed by Reliance and ACC. Reliance, Tata Steel and NTPC were the top three traded counters in this segment. The positions in the expired January contract will be automatically closed-out with their respective cash market closing prices. Except for ACC, all the other counters in the list are in sideways mode. Bulls are likely to have opportunity in as much as eight counters. Selling opportunities are likely to exist in three counters. Buying in Infosys is likely to be the best bet for Friday's trading. Bullish trigger level for this counter is placed very close to its current level. Bull pressure on Friday is likely to trigger the uptrend in Infosys. Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list remains the same with no major changes. Thursday's market action resulted in triggering the uptrend in recommended counter — Tata Motors. The exit level for the downtrend in Zee Tele continues to remain at Rs 163.70. Bear domination on Friday is likely to terminate the uptrend in most of the counters. On the contrary, the lone downtrend counter, Canara Bank, is likely to be under threat. Buying opportunities are likely to exist in Canara Bank, Infosys and Reliance. Selling opportunities are likely to exist in Reliance and State Bank. The best among the above is likely to be the buying in Infosys. Bull move on Friday has the potential to initiate a fresh 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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