Financial Daily from THE HINDU group of publications
Friday, Jul 22, 2005
Financial Daily from THE HINDU group of publications Friday, Jul 22, 2005 |
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Markets
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Technical Analysis Bears prevail K. Premkumar
BEARS were successful in restricting the bulls from making further gains on Thursday. They gained considerably from the day's market action. The sentiment reading of the tradable counters stands bearish. Bull domination on Friday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bearish sentiment is likely to be further strengthened. Nifty futures recommendation: For the second successive trading day, the July month contract opened with a bull gap. After the initial bull move, bears made a strong come back and gained control of the day's proceedings. The July contract moved within a band of 29 registering an intra-day low of 2217.00. It closed with a loss of around seven points with respect to previous close. Bears were successful in reversing the uptrend in the July contract. The long trade exited with a profit of 14 points. In the normal course of trading on Friday, the initiated short position is unlikely to be disturbed. Stock futures recommendation: The composition of the top-10 tradable counters had a change. Polaris regained entry with the exit of NTPC. The downtrend in NTPC is likely to terminate at 93.30. Except for the downtrend in ICICI Bank, all the other counters in the list are likely to be safe. Bulls are likely to have opportunity in five counters. Selling opportunities are likely to exist in two counters. For Friday, the best bet is likely to be the buying in Satyam. This counter is in the sideways mode. Bullish trigger level for this counter is placed quite closer to the current level. Bear move on Friday has the potential to trigger the uptrend in Satyam. Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. IPCL moved to the fifth position followed by State Bank and ONGC. Bear move on Friday could be a threat to the uptrend in IPCL, Reliance and VSNL. On the contrary, the downtrend in State Bank is likely to be terminated. For Friday, three opportunities are likely to exist in either side of trading. Selling in ONGC is likely to be the best for Friday's trading. Sell level for this counter is placed within three rupees from the closing price. Bear pressure on Friday is likely to initiate a fresh downtrend in ONGC. (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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