Financial Daily from THE HINDU group of publications
Friday, Sep 23, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 23, 2005 |
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Markets
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Technical Analysis Bear onslaught K. Premkumar
BEARS were in total command of Thursday's trading. Their dominance left the bulls with no opportunity to recover. The sentiment reading of the tradable counters remains bearish. Bull domination on Friday would have little impact on the sentiment reading. However, further bear pressure would strengthen the prevailing bearish sentiment reading. Nifty futures recommendation: During the open, the September month contract gained three points. Thereafter, bears took charge of the day's proceedings and brought a steep fall of 93 points registering a low of 2464.20. The September contract closed with a loss of 83 points with respect to Wednesday's close. The day's move had no impact on the recommended levels. Entry levels on either side for the September contract is placed quite far away. In the normal course of trading on Friday, the sideways trend is unlikely to be disturbed. Stock futures recommendation: The composition of the top-10 active counters list remains intact. The ranking of the list had a minor change. Bear move on Friday is likely to terminate the uptrend in ICICI and Reliance. On the contrary, the downtrend in Infosys is likely to be under threat. Most of the counters in the list are likely to be under threat. For Friday, a lone opportunity is likely to exist on either side of trading. This is likely to exist in IPCL on the long side and ONGC on the short side. Between the two, the best bet is likely to be the selling in ONGC. Sell level for this counter is placed closer to the last traded price. Bear pressure on Friday is likely to initiate a fresh downtrend in ONGC. Cash segment: The composition of the top-10 tradable counters list underwent a change. SRF regained entry with the exit of Satyam. The ranking of the list too had some changes. Rolta moved to the fifth position followed by Reliance Capital and Sterling Biotech. The downtrend in Satyam is likely to terminate at 552.05. None of the counters in the list are in the uptrend. The prevailing downtrend counters in the list are likely to be safe. Bulls are unlikely to have any opportunity for Friday's trading. Selling opportunities are likely to exist in India Infoline and Reliance. Bearish trigger level for Reliance is placed quite closer to the current level. Bear move on Friday is likely to trigger the downtrend in Reliance. (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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