Financial Daily from THE HINDU group of publications
Wednesday, Mar 30, 2005
Financial Daily from THE HINDU group of publications Wednesday, Mar 30, 2005 |
|
|
|
|
|
Markets
-
Technical Analysis Bear onslaught K. Premkumar
BEARS were in total control of Tuesday's trading activity. The sentiment reading of the tradable counters remains bearish. Wednesday's trading is unlikely to have much effect on the sentiment reading. Nifty Futures Recommendation: The March contract opened with a bear gap of six points and subsequently lost around 56 points.
Bulls could not put a stop to the bear rampage. The March contract closed with a loss of 50 points over Monday's close. The downtrend in the March contract gained substantially. It is locked with a profit of around 76 points. The exit and bullish trigger levels for the March contract are placed quite far away. In the normal course of trading on Wednesday, these levels are unlikely to be triggered. Stock Futures Recommendation: The composition of the top-10 active counters list is unchanged. The ranking of the list had changes. Reliance Industries & Andhra Bank, Infosys and ONGC interchanged their rankings. Further bear move on Wednesday is likely to terminate the lone uptrend counter Satyam. On the other hand, the CNX-IT and Infosys are likely to be under threat. Lone opportunity is likely to exist on either side of trading. Selling in Satyam is likely to be the best bet for Wednesday's trading. Bearish trigger level for this counter is placed nearer to the current level. Bear pressure on Wednesday is likely to reverse the prevailing uptrend in Satyam. Cash Segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a minor change. ONGC and Satyam interchanged their positions. Bear pressure on Wednesday is likely to reverse the uptrend in Satyam. Bull domination is likely to terminate the downtrend in ONGC. Infosys is likely to be the lone buying opportunity for Wednesday's trading. Selling opportunities are likely to exist in Infosys and Satyam. The best bet is likely to be the selling in Infosys. Sell level for this counter is placed quite closer to the last traded price. Bear move on Wednesday has the potential to initiate a fresh 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.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|