Financial Daily from THE HINDU group of publications
Tuesday, May 17, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 17, 2005 |
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Markets
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Technical Analysis Bull domination K. Premkumar
BULLS were in total command of Monday's trading activity. The sentiment reading of the tradable counters stands strongly bullish. Bear domination on Tuesday is likely to reduce the bull count by a considerable margin thereby resulting a change in the sentiment reading. Nifty futures recommendation: The May month contract opened three points above the previous close and made steady gains during the day's trading. Bulls capitalised the day's entire move leaving the bears stranded. The May contract moved within a band of 29 points registering a low of 1,976. It closed higher with a gain of around 25 points over Friday's close. Bull domination during the day led to the initiation of the uptrend in the May contract. In the normal course of trading on Tuesday, the initiated long position is unlikely to be disturbed. Bearish trigger level for the May contract is still placed quite far away. Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains unchanged. The top three traded counters in this segment were Tata Steel, Maruti and State Bank of India. None of the counters in the list are in the downtrend. Most of the prevailing uptrend counters in the list are likely to be under threat. Bulls are likely to have opportunity in two counters. Selling opportunities are likely to exist in six counters. For Tuesday, the best is likely to be the buying in Satyam. Bullish trigger level for this counter is placed very close to the current level. Bull pressure on Tuesday is likely to initiate a fresh uptrend in Satyam.
Cash segment: The composition of the top-10 active counters list underwent a change. Oriental Bank gained entry with the exit of ONGC. The ranking of the list had some changes. Maruti moved to the fifth position followed by State Bank of India and Oriental Bank. The uptrend in ONGC is likely to terminate at 879.85.
Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter - Oriental Bank is likely to be under threat. Buying opportunities are likely to exist in three counters. Selling opportunities are likely to exist in six counters. The best bet for Tuesday's trading is likely to be the buying in Satyam. This counter is in the sideways mode. Buy level for this counter is placed quite closer to the current level. Bull move on Tuesday is likely to trigger the uptrend in Saytam. (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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