Financial Daily from THE HINDU group of publications
Friday, Mar 04, 2005
Financial Daily from THE HINDU group of publications Friday, Mar 04, 2005 |
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Markets
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Technical Analysis Bull domination K. Premkumar
BULLS were in total command of Thursday's trading activity. Their dominance left the bears stranded. The sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Bear domination on Friday is likely to reduce the bull count by a considerable margin, thereby neutralising the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to continue with added strength. Nifty Futures Recommendation: The near month March contract opened around its previous close and made steady gains during the day's trading. Bulls capitalised on the day's entire move leaving the bears with no opportunity to recover. The March contract closed higher with a gain of 42 points over its previous close. The uptrend in the March contract remains intact. The exit level for the long position is out of the danger zone. The exit and bearish trigger levels for the March contract is placed quite far away from the current level. These levels are unlikely to be triggered on Friday. Stock Futures Recommendation: There were no new entries to the top 10 tradable list. The ranking of the list too remains unchanged. Trading activity in ONGC was quite active on Thursday. For Friday, most of the uptrend counters in the list are likely to be under threat. Bulls are likely to have opportunity in four counters. Selling opportunities are likely to exist in six counters. The best bet is likely to be the buying in Infosys. Buy level for this counter is placed just three rupees above the closing value. Bull pressure on Friday is likely to initiate a fresh uptrend in Infosys. Cash Segment: The composition of the top 10 active counters list underwent a change. Tata Motors gained entry with the exit of Tata Tele. Tata Steel moved to the third position followed by Reliance and SAIL. Bear domination on Friday is likely to terminate most of the prevailing uptrend counters in the list. Buying opportunities are likely to exist in three counters. Selling opportunities are likely to exist in four counters. For Friday, the best is likely to be the buying in Infosys. Bullish trigger level for this counter is placed quite closer to the current level. Bull move on Friday 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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