Financial Daily from THE HINDU group of publications
Friday, Aug 05, 2005
Financial Daily from THE HINDU group of publications Friday, Aug 05, 2005 |
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Markets
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Technical Analysis Sideways movement K. Premkumar
MARKET witnessed sideways movement during Thursday's trading. Neither bulls nor bears could gain much from day's trading. However, sentiment reading of the tradable counters remains bullish. Bear domination on Friday has the potential to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to be strengthened. Nifty futures recommendation: The August month contract gapped up by 7 points and further went up by another 12 points. However, bulls were not able to sustain the momentum and gave way to the bears. The August month contract moved within a band of 21 points registering an intra-day low of 2341.00. It closed with a gain of 17 points with respect to previous close.
The uptrend in the August contract is locked up with a decent profit of around 20 points. The exit and bearish trigger levels for the August contract is placed quite far away and this is unlikely to be triggered on Friday. Stock futures recommendation: The top-10 counters in the list remain unchanged. The top three traded counters in this segment were Reliance, VSNL and Tata Steel. All the positions in the list are likely to be under threat for Friday's trading. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in two counters. The best bet for Friday's trading is likely to be the selling in ONGC. This counter is in the sideways mode. Bear move on Friday is likely to trigger the downtrend in ONGC. Cash segment: The composition of the top-10 active counters list has a minor change. TCS gained entry with the exit of Tata Tele. Reliance Industries moved to the top rank followed by VSNL. Tata Steel and ONGC interchanged their rankings. The exit level for the downtrend in Tata Tele is placed at 30.30. The lone downtrend counter Zee Tele is likely to be undisturbed. However, Except for SBIN all the uptrend counters are likely to be under threat for Friday's trading. Buying opportunities are likely to exist in two counters and selling opportunities in five counters. The best among the above is likely to be selling in Infosys. This counter is in sideways mode. Bear pressure on Friday is likely to initiate a fresh downtrend in Infosys. (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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