The Hindu Business Line : Bulls reign

BULLS gained control of Friday's trading activity. However, they could not gain much from the day's market action. The sentiment reading of the tradable counters stands neutral. Further bull move on Monday is likely to change the sentiment reading in its favour.

On the other hand, it is likely to turn bearish.

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Nifty futures recommendation: During the open, the July contract lost around five points. Later on, bulls came back strongly and took charge of the day's proceedings. The July contract moved within a band of 45 points. It closed higher with a gain of 36 points over Thursday's close.

Bull domination during the day led to the termination of the downtrend in the July contract. The short trade exited with a loss of 21 points. Bullish trigger level for the July is now placed very close to the last traded value. Bull pressure on Monday is likely to initiate a fresh uptrend in the July contract.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters remains unchanged. The ranking of the list had a minor change. Reliance, VSNL and Titan were the top three traded counters in this segment.

Bear move on Monday is likely to terminate the uptrend in Reliance and Tata Motors. On the contrary, the downtrend in ICICI Bank, Infosys and Satyam is likely to be under threat. Buying opportunities are likely to exist in seven counters. Selling opportunities are likely to exist in four counters.

For Monday, the best bet is likely to be the buying in ONGC. This counter is in the sideways mode. Bullish trigger level for this counter is placed closer to the current level. Bull pressure on Monday is likely to trigger the uptrend in ONGC.

Cash segment: There were no new entries or exits to the top-10 tradable counters. The ranking of the list had some changes. VSNL moved to the second position followed by Infosys and Reliance Energy.

For Monday, most of the prevailing counters in the list are likely to be under threat. Bulls are likely to have opportunity in three counters. Selling opportunities are likely to exist in four counters. Buying in Tata Steel is likely to be the best for Monday's trading. Buy level for this counter is placed quite closer to the last traded price. Bull move on Monday has the potential to initiate a fresh uptrend in Tata Steel.

(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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