Financial Daily from THE HINDU group of publications
Wednesday, Sep 14, 2005
Financial Daily from THE HINDU group of publications Wednesday, Sep 14, 2005 |
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Markets
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Technical Analysis Bulls prevail K. Premkumar
THE bulls continued to march ahead during Tuesday's trading. The sentiment reading of the tradable counters continues to remain bullish. However, bear domination on Wednesday has the potential to change the sentiment reading in their favour. Nifty futures recommendation: The near month September contract opened with a bear gap of 14 points. Bears could not hold their initial momentum and surrendered to the bulls during the later part of the day's trading. The September contract moved within an intra-day range of 23 points. It closed higher with a gain of around 6 points with respect to Monday's close. The long position in the September contract remains undisturbed and is locked up with a profit of around 100 points. The exit and bearish trigger levels for the September contract are still placed quite far away. In the normal course of trading on Wednesday, these levels are unlikely to be triggered. Stock futures recommendation: The composition of the top-10 tradable counters remains intact. However, ranking of the list had minor changes. Tata Steel moved to second position followed by Reliance. IPCL and ICICI bank interchanged their rankings. The top three traded counters in the list are SBIN, IPCL and Reliance. The exit level for the long position in BOB is moved to 258.75. There are no downtrend counters in the list. All the uptrend counters in the list are likely to be under threat. Selling opportunities are likely to exist in five counters. Infosys and Tata Steel are likely to have buying opportunities. The best bet for Wednesday's trading is likely to be the selling in Tata steel. The exit and bearish trigger levels are placed quite nearer to its last traded price. Bear move on Wednesday has the potential to reverse the prevailing uptrend in Tata steel. Cash segment: The composition and ranking of the top-10 list had changes. Satyam and Sterling Biotech replaced SBIN and Amtek India from the list. Ranking of the list too had revamp. The exit levels for the uptrend in Infosys, and Tata Motors are placed at 2,416.55 and 510.60 respectively. Both the downtrend counters in the list are likely to be safe for Wednesday's trading. However, all the uptrend counters are under threat. Five opportunities are likely to exist for bears while bulls have only two opportunities for Wednesday's trading. The best is likely to be the selling in Reliance Capital. Bear move on Wednesday is likely to reverse the uptrend in Reliance Capital. (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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