The Hindu Business Line : Bull-run arrested

BEARS were successful on Friday in restricting the bulls from making further gains. Neither bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradable counters remains bullish. Bear domination on Monday is likely to reduce the bull count by a considerable margin thereby resulting change in the sentiment reading.

Nifty futures recommendation: The September month contract opened around the previous close and lost around thirteen points in the mid-session. Bears failed to capitalise on it as they yielded to the underlying bull pressure. The September contract moved within a close band of 17 points registering an intra-day high of 2450.00. It closed just a point above Thursday's close.

Click here for table

The uptrend in the September contract remains intact. The long position is locked up with a substantial profit of around 80 points. Bear domination on Monday has the potential to terminate the uptrend in the September contract. Bearish trigger level for the September contract is still placed far away.

Stock futures recommendation: The top-10 active counters list underwent a change. ICICI gained entry with the exit of REL. The ranking of the list too had some changes. The exit level for the long position in BOB and REL are placed at 252.45 and 586.30 respectively.

For Monday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in two counters. Selling opportunities are likely to exist in four counters. Buying in ONGC is likely to be the best for Monday's trading. This counter is in the downtrend. The exit and buy level for this counter is placed quite closer to the current level. Bull move on Monday has the potential to trigger these levels.

Cash segment: The composition as well as the ranking of the top-10 tradable list had a total revamp. Four new stocks gained entry to the list. The uptrend in Infosys and SAIL are placed at 2400.95 and 61.60 respectively. The downtrend in Zee Tele is likely to terminate at 188.95.

Bear move on Monday could be a threat to most of the uptrend counters in the list. On the other hand, the lone downtrend counter — VSNL is likely to be terminated. Buying opportunities are likely to exist in five counters. Selling opportunities are likely to exist in as much as seven counters. Buying in Tata Steel is likely to be the best bet for Monday's trading. Bullish trigger level for this counter is placed within a rupee from the last traded price. Bull pressure on Monday is likely 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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page