Financial Daily from THE HINDU group of publications
Thursday, Mar 24, 2005
Financial Daily from THE HINDU group of publications Thursday, Mar 24, 2005 |
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Markets
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Technical Analysis Bear onslaught K. Premkumar
BEARS extended their pressure over Wednesday's trading activity. Their dominance for the second successive trading day left the bulls stranded. The sentiment reading of the tradable counters stands strongly bearish with no uptrend counters. For Thursday, the prevailing bearish sentiment is likely to continue with a slight change in its value. Nifty futures recommendation: During the initial hour of the day's trading, the March contract gained around six points. Bulls failed to capitalise on it as they yielded to bear pressure. The March contract moved within a band of 53 points. It closed with a substantial loss of around 42 points over Tuesday's close. The short position in the March contract remains intact. The position is locked up with a profit of 40 points. The exit and bullish trigger levels for the March contract are placed quite far away. In the normal course of trading on Thursday, these levels are unlikely to be triggered. Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains unchanged. Wednesday's market action resulted in triggering the downtrend in the recommended counter - Satyam. All the counters in the list are in the downtrend. For Thursday, the downtrend in CNX IT, Infosys and Satyam are likely to be under threat. Bullish entry levels for all the counters are placed slightly away from the respective closing values. Entry level for Infosys is the nearest level among all the counters in the list. Bull domination on Thursday has the potential to reverse the downtrend in Infosys. Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had some changes. SAIL moved to the fourth position followed by Andhra Bank and Tata Steel. Bull move on Thursday is likely to terminate the downtrend in Infosys and Satyam. Buying opportunities are unlikely to exist for Thursday's trading. Selling opportunities are likely to exist in Andhra Bank and Reliance. Between the two, the best bet is likely to be Andhra Bank. This counter is in the sideways mode. Bearish trigger level for this counter is placed quite closer to the last traded price. Bear pressure on Thursday is likely to trigger the downtrend in Andhra 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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