The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. 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 with additional counters.

Nifty Futures

The July month contract opened with a bull gap of around 8 points from its previous close. It moved within a range of around 40 points andclosed with a gain of around 38 points from its previous close.

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The July contracts initiated a fresh uptrend. The long exit and short entry levels are placed near to its last traded price. These levels are likely to be triggered during Monday’s trading activity.

Stock Futures

The composition of the top-10 tradable list had a minor change. However, the ranking of the list had no changes. ICICI Bank made its way to top-10 list pushing out ONGC. The short exit level for ONGC is placed at 893.05.

Except Reliance Capital, Hindalco and Satyam all other counters in the top-10 tradable list are in uptrend. In the uptrend counters, Reliance industries, Tata Steel, Century Textiles and ICICI Bank are likely to be under threat for Monday’s trading. On the other hand, bull domination on Monday is likely to terminate Reliance Capital and Satyam in sell side.

Buying opportunities are likely to exist in Reliance Capital and Satyam. On the other hand, selling opportunities are likely to exist in Reliance Industries, Tata Steel, Century Textiles and ICICI Bank.

The best is likely to be buying in Satyam. This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

Cash Segment

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Except Reliance Industries, Tata Motors and Satyam, all other counters in the list are in uptrend. In the uptrend counters Tata Steel, SAIL and Infosys are likely to be under threat for Monday’s trading. On the other hand, bull domination on Monday is likely to terminate all the downtrend counters in the list.

Buying opportunities are likely to exist in the Reliance Industries, Tata Motors and Satyam. The selling opportunities are likely to exist in Tata Steel, SAIL and Infosys.

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