The Hindu Business Line : Bull onslaught

Bear domination on Monday has the potential to reduce the bull count by a considerable margin thereby warranting change in the sentiment reading. Otherwise, the prevailing bullish sentiment is likely to continue with added strength.

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Nifty futures recommendation: The near-month July contract opened six points lower than the previous close and went further down by another three points. Later on, bulls made a strong come back and took charge of the day's proceedings. The July contract moved within a band of 46 points. It closed higher for the week with a strong bullish note.

Bull domination during the day led to the reversal of the uptrend in the July contract. The short trade exited with a loss of 22 points. The exit level for the initiated short position and the bearish trigger level for the July are placed quite far away. In the normal course of trading on Monday, these levels are unlikely to be triggered.

Stock futures recommendation: The top-10 active counters list underwent a change. NTPC regained entry with the exit of IDBI. The exit level for the uptrend in ICICI Bank is placed at 433.15.

For Monday, most of the counters in the list are likely to be under threat. Buying opportunities are likely to exist in five counters. A lone selling opportunity is likely to exist in ONGC. Buying in Tata Motors is likely to be the best for Monday's trading. Buy level for this counter is placed closer to the last traded price. Bull pressure on Monday is likely to initiate a fresh uptrend in Tata Motors.

Cash segment: The composition of the top-10 tradable counters had a change. Tata Tele Service gained entry with the exit of IDBI. The ranking of the list too had few changes. The downtrend in IDBI is likely to terminate at 114.05.

Bear pressure on Monday is likely to terminate most of the uptrend counters in the list. On the contrary, the downtrend in Infosys, State Bank and TCS are likely to be under threat.

Bulls are likely to have opportunity in State Bank and TCS. Selling opportunities are likely to exist in ONGC, Tata Steel and Tata Tele. The best bet among the above is likely to be the buying in State Bank. This counter is in the sideways mode. Bull move on Monday has the potential 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 consultant.

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