The Hindu Business Line : Bulls prevail

BULLS extended their pressure over Friday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear domination on Monday is likely to reduce the bull count by a considerable margin, thereby, resulting a change in the sentiment reading.

On the other hand, the prevailing bullish sentiment is likely to continue with added strength.

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Nifty futures recommendation: During the initial hour of the day's trading, the April month contract lost around 14 points. Bears failed to capitalise on it as they yielded to bull pressure.

The April contract moved within a band of 47 points. It closed higher with a gain of 34 points with respect to previous close.

Bull domination during the day led to the initiation of the uptrend in the April contract. In the normal course of trading on Monday, the initiated long position is unlikely to be disturbed. The exit and bearish trigger levels for the April contract is placed far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a total revamp. Andhra Bank moved to the top slot and Tata Motors moved to the second position.

The uptrend in Infosys is likely to terminate at Rs 2211.20.

Bear move on Monday is likely to terminate the uptrend in CNX IT, Reliance and Satyam.

On the other hand, the lone downtrend counter - Oriental Bank is likely to be under threat. Buying opportunities are likely to exist in as much as seven counters.

Selling opportunities are likely to exist in four counters. The best bet for Monday's trading is likely to be the buying in Oriental Bank. Buy level for this counter is placed within a rupee from the current level. Bull pressure on Monday is likely to initiate a fresh uptrend in Oriental Bank.

Cash segment: The composition as well as the ranking of the top-10 active counters list remains intact. Friday's market action resulted in triggering the uptrend in the recommended counter - Reliance.

Bear pressure on Friday could be a threat to most of the uptrend counters in the list. On the contrary, the downtrend in PNB is likely to be terminated. Bulls are likely to have four opportunities.

Selling opportunities are likely to exist in two counters. Buying in Andhra Bank is likely to be the best for Monday's trading.

This counter is in the sideways mode. Bullish trigger level for this counter is placed quite closer to the last traded price. Bull move on Monday has the potential to trigger the uptrend 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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