The Hindu Business Line : Bull domination

Bulls dominated Friday's trading activity. The sentiment reading of the tradable counters changed to 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

The November contract opened with a bull gap of around 5 points from its previous close. The contract moved within a range of around 59 points making an intra-day high of 3849.50. It closed with a gain of around 46 points from its previous close.

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

STOCK FUTURES

The composition and the ranking of the top-10 tradable counters had minor changes. Hindustan Lever went out of the list and gave way to ICICI Bank. Tata Motors and SBI interchanged their rankings. Bank of India and SRF moved down to ninth and tenth positions, respectively. The top-3 tradable counters in this segment were Reliance Industries, ICICI Bank and SBI.

Except ICICI Bank, all other counters in the list are likely to be under threat for Monday's trading. There is a lone opportunity on the bull side and ample opportunities on the bear side for Monday's trading. The best is likely to be buying in Reliance Capital. This counter is in downtrend. Bull move on Monday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had minor changes. Hindustan Lever moved out and gave way to ICICI Bank. Tata Motors and SAIL moved down to ninth and tenth positions, respectively.

Most of the counters in the list are in up trend. There are five downtrend counters in the list, which are likely to be under threat for Monday's trading. There are five selling opportunities for Monday's trading.

The best is likely to be selling in Infosys. This counter is in uptrend. Bear 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.