Business Daily from THE HINDU group of publications
Thursday, Jul 20, 2006
Business Daily from THE HINDU group of publications Thursday, Jul 20, 2006 |
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Markets
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Technical Analysis K. Premkumar
Bears dominated Wednesday's trading activity. The sentiment reading of the tradable counters remains bearish. Bull move on Thursday is likely to change the sentiment reading in their favour. On the contrary, the prevailing sentiment reading is likely to be further strengthened.
Nifty futures
The July month contract opened with a bull gap of around 52 points from Tuesday's close. The July contract moved within a range of around 130 points making an intraday low of 2894. It closed with a loss of around 60 points from its previous close. The short position in the July month contract remains intact. The short exit level is placed at 3025.05 locking in a decent profit of 45 points. The long entry level is placed quite far away from Wednesday's last traded price. In the normal course of trading during Thursday these levels are unlikely to be triggered.
Stock futures
The composition and ranking of the top-10 tradable list had minor changes. REL gave way to BHEL. Reliance, Nalco, Ranbaxy and Infosys moved up in the ranking of the top 10 tradable list, while Satyam came down to sixth position. The top-three tradable counters in this segment were Reliance, Infosys and Satyam. Most of the counters in the list are in downtrend. Infosys is likely to be terminated during the course of Thursday's trading. The two uptrend counters in the list are under threat for Thursday's trading. There exists two buying opportunities and one selling opportunity for trading on Thursday. The best is likely to be selling in Ranbaxy. This counter is in uptrend. Bear move on Thursday is likely to reverse the prevailing trend in this counter. The exit level for Tisco is placed at 487.4.
Cash segment
The composition and ranking of the top-10 tradable list had no changes. Most of the counters in the list are in downtrend while Infosys, Satyam and Reliance Capital are in sideways mode. The exit levels for the downtrend counters in the list are placed quite far away from Wednesday's last traded price. In the normal course of the trading on Thursday these levels are unlikely to be triggered. There exists three selling opportunities. The best is likely to be selling in Infosys. This counter is in sideways mode. Bear move on Thursday is likely to initiate a fresh downtrend 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.
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