The Hindu Business Line : Bull run continues

Bulls prevailed over Friday's trading activity. The sentiment reading of the tradable counters changed to marginally bullish. Bear move on Monday is likely to change the sentiment reading to bearish. On the other hand, the prevailing bullish sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bear gap of around 6 points from its previous close. The November month contract moved within a range of around 46 points making an intra-day high of 3822. It closed with a gain of around 19 points from its previous close.

The long position in the November month contract remains intact. The long exit and short entry levels are placed quite far away from its last traded price. In the normal course of trading during Monday, these levels are unlikely to be triggered.

STOCK FUTURES

Click here for table

The composition and ranking of the top-10 tradable list had minor changes. Hind Lever gave way to Reliance Energy. Reliance Energy occupied 10th position in the ranking. SRF moved down and occupied sixth position while Tata Motors and Tata Steel moved up and occupied fourth and fifth position respectively. The top-3 tradable counters in this segment were Reliance Industries, Reliance Capital and Tata Steel. The exit levels for Hind Lever and Satyam are placed at 240.05 and 432 respectively.

Most of the counters in the top-10 tradable list are in the uptrend. The uptrend counters Reliance Industries and Reliance Capital are likely to be under threat for Monday's trading. On the other hand, two downtrend counters are likely to be terminated. There are two opportunities on the sell side and three opportunities on buy side for Monday's trading. The best is likely to be buying in Tata Steel. This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 tradable list had minor changes. TCS gave way to Tata Motors. Tata Motors occupied 10th position. ONGC moved up and occupied third position while Infosys moved down and occupied fourth position. The exit levels for TCS, Reliance Capital, SBIN and L&T are placed at 1088.05, 585.15, 1117.95 and 1329.10 respectively.

There are three uptrend counters and seven downtrend counters in the top-10 tradable list. Except ONGC, the other downtrend counters are likely to be under threat for Monday's trading. On the other hand, the uptrend counter Bajaj Auto is likely to be terminated. There are ample buying opportunities and a lone selling opportunity for Monday's trading. The best is likely to be buying in Suzlon. This counter is in downtrend. Bull move on Monday is likely 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.