The Hindu Business Line : Sideways movement

Friday's trading activity witnessed sideways movement. However, sentiment reading of the tradable counters turned bearish. Bull move on Monday is likely to change the current sentiment. On the contrary, the prevailing bearish sentiment is likely to be further strengthened with additional counters.

NIFTY FUTURES

The June month contract opened with a bear gap of around 9 points from its previous close. However, bears could not sustain their initial momentum and allowed bulls to regain their lost ground. The June contract moved within a range of around 41 points. Towards the end of the day's trading, bears managed to close lower by 14 points from its previous close.

The long position in the June Nifty futures is intact. The long exit and short entry levels are placed far away from its last traded price. These levels are unlikely to be triggered during Monday's trading.

STOCK FUTURES

The composition of the top-10 tradable list had a minor change. However, the ranking of the list had no changes. BHEL made its way to the top-10 list, pushing out Tata Motors, and occupied ninth position.

Click here for table

Except Reliance Industries, Tata Steel, Satyam and BHEL all other counters in the top-10 list are in uptrend. Bear domination on Monday is likely to terminate the uptrend in SBI, Century Textiles, Hindalco and ICICI Bank. On the other hand, all the downtrend counters are under threat for Monday's trading. Buying opportunities are likely to exist in Reliance Industries, Tata Steel, Satyam and BHEL. Selling opportunities are likely to exist in SBI, Century Textiles, Hindalco and ICICI Bank.

The best among these is selling in ICICI Bank. This counter is in uptrend. Bear move on Monday is likely to reverse the current position in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However, ranking of the top-10 tradable list had minor changes. IDBI moved up from sixth to fourth position and pushed Tata Steel and SAIL to one step down in the list. BHEL and Satyam interchanged their positions.

Except SBI, IDBI and Hindalco, all other counters in the top-10 list are in downtrend. SBI and Hindalco are likely to be under threat on the bull side for Monday's trading. Bull domination on Monday is likely to terminate all the downtrend counters other than BHEL. Buying opportunities are likely to exist in the Reliance Industries, Infosys, Tata Steel, SAIL, Tata Motors and Satyam. The selling opportunities are likely to exist in SBI and Hindalco.

The best among the above is likely to be buying in Tata Motors. This counter is in downtrend. Bull move on Monday is likely to reverse the existing 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.