The Hindu Business Line : Bull run continues

BULLS prevailed over Friday's trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The January month contract opened with a bull gap of around 26 points. The January month contract moved within a range of around 54 points making an intraday low of 2930.

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It closed with a gain of around 57 points from its previous close.

The February month contract entered a fresh long position in the morning session. The exit and sell levels for the February month contract are placed quite far away from its last traded price. In the normal course of trading, these levels are unlikely to be triggered during Monday's trading.

Stock futures recommendation : The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance and Satyam interchanged their positions. The top-three tradable counters in this segment were Reliance, Tata steel and Infosys.

All the counters in the top-10 tradable list are likely to be under threat for Monday's trading. There is a lone opportunity on the buy side and ample opportunities on the sell side. The best for Monday is likely to be selling in Ranbaxy. This counter is in uptrend. Bear pressure on Monday is likely to reverse the existing trend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. Tatamotors and Reliance Capital went out of the list and gave way to Maruti and ONGC. Satyam and Titan interchanged their positions.

All the uptrend counters in the top-10 tradable list are likely to be under threat for Monday's trading. On the other hand, a lone down trend counter VSNL is likely to be terminated. There are two opportunities on the buy side and ample opportunities on the sell side. The best is likely to be buying in VSNL. This counter is in down trend. Bull pressure on Monday has the potential to reverse the prevailing trend in this counter.

(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.