The Hindu Business Line : Bulls regain control

Bulls regained control of Friday's trading activity. The sentiment reading of the tradable counters turned to neutral. Bull move on Monday has the potential to change the sentiment reading in their favour. On the contrary, the prevailing sentiment is likely to be turned to bearish.

Nifty Futures: The May month contract opened with a bear gap of around 52 points from its previous close. However, the initial bear momentum was not sustained and gave way to bulls. The May month contract moved within a range of around 122 points making an intra-day high of 4271.80 and closed with a gain of around 52 points from its previous close.

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The short position in the May month contract is exited and a new long position initiated. The long exit and sell entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Monday's trading activity.

Stock Futures: The composition and the ranking of the top-10 tradable list had minor changes. ACC went out from the top-10 tradable list and it is filled by Tata Motors. ICICI Bank and Century Textiles interchanged their positions. The top-3 tradable counters in this segment were Infosys, Reliance and SBI.

There are six uptrend and four downtrend counters in the list. There are three uptrend counters under threat for Monday. There are three selling and two buying opportunities likely to exist in the list. The best among the above is likely to be buying in Century Textiles. This counter is in downtrend. Bull move on Monday is likely to reverse the trend in this counter.

Cash Segment: The composition of the top-10 tradable list has no changes. However, the ranking in the top-10 list had minor changes. ICICI Bank and Infosys interchanged their position. ONGC and Tata Motors also interchanged their positions.

There are four uptrend and six downtrend counters in the top-10 tradable list. A lone uptrend counter Reliance is under threat for Monday. There are six buying and one selling opportunities likely to exist in the list. The best candidate is likely to be buying in TCS. This counter is in downtrend. Bull move on Monday is likely to reverse the 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.