Financial Daily from THE HINDU group of publications
Tuesday, Jul 26, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jul 26, 2005 |
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Markets
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Technical Analysis Bulls reign K. Premkumar
THE bulls maintained their supremacy over Monday's trading activity. Their dominance for the third successive trading day left the bears totally stranded. The sentiment reading of the tradable counters stands strongly bullish with no downtrend counters. Bear domination on Tuesday is likely to reduce the bull count by a considerable margin thereby neutralising the sentiment reading. Nifty futures recommendation: The July month contract opened three points higher than the previous close and made steady gains over the course of the day's trading. Bears were unable to make any impact during the day's trading. The July contract moved within a band of 22 points registering an intra-day low of 2266.55. It closed higher with a gain of 18 points over Friday's close. The uptrend in the July contract remains undisturbed. The exit level for the long position is now placed out of the danger zone. The exit and bearish trigger level for the July contract are placed quite far away. Stock futures recommendation: The composition of the top-10 tradable counters had a change. ICICI Bank gained entry with the exit of NTPC. The ranking of the list too had some changes. Satyam moved to the third position followed by Polaris and Infosys. Except for the uptrend in ICICI Bank, all the other counters in the list are likely to be under threat. Bears are likely to have opportunity in three counters. Buying opportunities are likely to exist in two counters. For Tuesday, the best bet is likely to be the selling in Polaris. This counter is in the uptrend. The exit and bearish trigger levels for this counter are placed closer to the current level. Bear pressure on Tuesday is likely to reverse the prevailing uptrend in Polaris. Cash segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a minor change. TCS and Tata Teleservices interchanged their positions. Bear pressure on Tuesday is likely to terminate most of the uptrend counters in the list. For Tuesday, opportunities are likely to exist in Infosys and TCS on either side of trading. Buying in TCS is likely to be the best for Tuesday's trading. Bullish trigger level for this counter is placed quite closer to the last traded price. Bull move on Tuesday is likely to initiate a fresh uptrend in TCS. (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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