The Hindu Business Line : Bulls prevail

BULLS suppressed the valiant attempt made by the bears during the initial hour of Friday's trading. The day's market action resulted in terminating the uptrend in few counters. The sentiment reading of the tradable counters remains bullish. Bear domination on Monday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The near month contract opened with a bear gap of 20 points and went further down by another three points. Thereafter, bulls made a strong comeback and took charge of the day's proceedings. The June contract moved within a band of 43 points registering an intra-day high of 2187.35. It closed with a gain of around eight points over Thursday's close. The long position in the June contract survived from the initial bear move. The exit and bearish trigger levels for the June contract are placed at the same levels. In the normal course of trading on Monday, these levels are unlikely to be triggered.

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Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list too remains unchanged. State Bank, Reliance and Tata Steel were the top three traded counters in this segment.

Bear pressure on Monday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter-Infosys is likely to be under threat. Buying opportunities are likely to exist in three counters. Selling opportunities are likely to exist in six counters. For Monday, the best bet is likely to be the buying in NTPC. This counter is in the sideways mode. Bull move on Monday is likely to trigger the uptrend in NTPC.

Cash segment: The composition of the top-10 active counters list underwent a change. SAIL gained entry with the exit of Wipro. The uptrend in Ranbaxy is likely to terminate at 1091.95.

For Monday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in four counters. Selling opportunities are likely to exist in two counters. Buying in Maruti is likely to be the best for Monday's trading. Bullish trigger level for this counter is placed closer to the current level. Bull pressure on Monday is likely to initiate a fresh uptrend in Maruti.

(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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