Financial Daily from THE HINDU group of publications
Friday, Apr 08, 2005
Financial Daily from THE HINDU group of publications Friday, Apr 08, 2005 |
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Markets
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Technical Analysis Range-bound movement K. Premkumar
THURSDAY'S trading activity witnessed narrow movement. Bulls managed to gain from the day's trading. The sentiment reading of the tradeable counters stands mildly bullish. Bear domination on Friday is likely to terminate most of the uptrend counters thereby resulting a change in the sentiment reading. On the contrary, the prevailing bullish sentiment is likely to be further strengthened. Nifty futures recommendation: The April contract opened one point above the previous close and went further by four points. Later on, bears took charge of the day's proceedings. The April contract moved within a band of 28 points. It closed lower with a loss of 21 points with respect to Wednesday's close. Initial move on Thursday led to the initiation of the uptrend in the April contract. However, the initiated long position is likely to be under threat. The exit and bearish trigger levels are placed closer to the last traded value. Bear move on Friday is likely to reverse the prevailing uptrend in the April contract. Stock futures recommendation: The top-10 tradeable list underwent a change. Tata Tea gained entry with the exit of Andhra Bank. The ranking of the list underwent some changes. Reliance moved to the fourth position followed by Cipla and ONGC. The short position in Oriental Bank is likely to terminate at 310.45. None of the counters in the list are in the downtrend. Bear move on Friday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in all the ten counters. Buying opportunities are likely to exist in four counters. For Friday, the best bet is likely to be the selling in ONGC. This counter is in the uptrend. The exit and bearish trigger levels are placed very close to the current level. Bear pressure on Friday is likely to trigger these levels. Cash segment: The composition as well as the ranking of the top-10 tradeable list remains unchanged. Bulls were successful in triggering the uptrend in the recommended counter-SAIL. Except for the downtrend in ONGC, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in seven counters. Buying opportunities are likely to exist in four counters. Selling in PNB is likely to be the best for Friday's trading. Sell level for this counter is placed quite closer to the last traded price. Bear move on Friday is likely to initiate a fresh downtrend in PNB. (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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