The Hindu Business Line : Narrow movement

FRIDAY'S market action witnessed range bound 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 domination on Monday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to continue with added strength.

Nifty Futures recommendation: Initially, the near-month July contract lost around 7 points. Later on, bulls took charge of the day's proceedings and wiped out their losses. The July contract moved within a band of 30 points. It closed with a gain of 17 points with respect to Thursday's close.

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The uptrend in the July contract remains intact. The exit and bearish trigger levels for the July contract are still placed slightly away from the current level. In the normal course of trading on Monday, these levels are unlikely to be triggered.

Stock Futures recommendation: The composition of the top-10 tradable list underwent a change. SCI gained entry with the exit of Tata Motors. The ranking of the list had a total revamp. The stop-loss for the uptrend in Tata Motors is placed at 424.95.

Bear domination on Monday could be a threat to most of the uptrend counters in the list. On the other hand, the lone downtrend counter-SCI is likely to be terminated. For Monday, six opportunities are likely to exist on either side of trading. Buying in State Bank is likely to be the best for Monday's trading. This counter is in the sideways mode. Buy level for this counter is placed closer to the last traded price. Bull pressure on Monday is likely to initiate the uptrend in State Bank.

Cash segment: The composition as well as the ranking of the top-10 tradable counters remains intact. The exit level for the uptrend in Hind Lever and the downtrend in SAIL are likely to terminate at 163.30 and 50.85 respectively.

For Monday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in six counters. Selling opportunities are likely to exist in three counters. Buying in State Bank is likely to be the best bet for Monday's trading. Bullish trigger level for this counter is placed quite closer to the current level. Bull move on Monday is likely to trigger the uptrend 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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