The Hindu Business Line : Bull domination

BULLS dominated Friday's trading activity. However, the sentiment reading of the tradable counters remains mildly bearish. Further bull domination on Monday is likely to reverse the sentiment reading in its favour. On the contrary, the prevailing bearish sentiment is likely to be strengthened.

Nifty futures recommendation: The October contract opened around Thursday's close and went down by 13 points. However, bears could not capitalise on their initial momentum and gave way to bulls during later part of day's trading. The October contract moved with in a range of 68 points making an intra-day high of 2449.70. It closed with a gain of around 49 points from its previous close.

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Bull domination during the day reversed the short position in the October contract. The exit and sell levels for the October month contract is placed quite far away. In the normal course of trading during Monday these levels are unlikely to be triggered.

Stock futures recommendation: The composition of the list had no changes. The ranking of the top-ten tradable list had minor changes. State Bank and Reliance interchanged their positions. The top three tradable counters in this segment were Reliance, State Bank and SRF.

All the counters in the top-10 tradable list are likely to be under threat for Monday's trading. There are five opportunities on the bull side. On the other hand a lone Selling opportunity is likely to exist in Infosys.

The best for Monday's trading is likely to be the buying in Hind Lever. This counter is in side ways. Bull pressure on Monday is likely to initiate fresh uptrend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. ITC went out of the top-10 tradable list and gave way for Indiabulls. SRF and Satyam interchanged their positions, State Bank moved to seventh position and Sesa Goa to ninth position.

Bear domination on Monday is likely to terminate all the uptrend counters in the list. On the other hand, short positions in McDowell, Tata Steel and Indiabulls are likely to be terminated.

Buying opportunities exist in five counters for Monday's trading. Infosys is the lone Selling opportunity on the bear side.

The best for Monday's trading is likely to be the buying in McDowell. Bull domination on Monday is likely to initiate uptrend in McDowell.

(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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