Financial Daily from THE HINDU group of publications
Tuesday, Jun 28, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jun 28, 2005 |
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Markets
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Technical Analysis Volatile movement K. Premkumar
MONDAY'S trading activity witnessed volatile movement. Neither the bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradable counters remains bullish. Bear move on Tuesday is likely to reduce the bull count by a considerable margin thereby resulting change in the sentiment reading. Nifty futures recommendation: During the open the June month contract lost around fourteen points. Bulls made an instant recovery and wiped out their early losses. The June contract moved within a band of 36 points registering an intra-day high of 2199.00. It closed with a marginal gain of two points over Friday's close. The uptrend in the June contract remains intact. The exit level for the long position has been moved closer. Bear domination on Tuesday has the potential to terminate the uptrend in the June contract. Bearish trigger level for the June contract remains unchanged. Stock futures recommendation: The composition of the top-10 active counters list underwent a change. ONGC gained entry with the exit of Ranbaxy. The top three traded counters in this segment were Reliance, IPCL and Tata Steel. The exit level for the downtrend in Ranbaxy is placed at 1114.05. Except for the downtrend in Arvind Mill, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in as much as seven counters. Buying opportunities are likely to exist in four counters. Selling in State Bank is likely to be the best for Tuesday's trading. Bearish trigger level for this counter is placed within a rupee from the last traded price. Bear pressure on Tuesday is likely to initiate a fresh downtrend in this counter. Cash segment: The composition of the top-10 tradable counters remains intact. The ranking of the list had a change. SAIL and Tata Motors interchanged their positions. Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the list. The lone downtrend counter — SAIL is likely to be safe. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in two counters. For Tuesday, the best bet is likely to be the selling in State Bank. This counter is in the sideways mode. Sell level for this counter is placed closer to the current level. Bear move on Tuesday is likely to trigger the downtrend in State 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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