The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters remains 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

July month contract opened with a bear gap of around 16 points from its previous close. However, they were not able to sustain their initial momentum and gave way to bulls to regain their initial losses. The contract moved within a range of around 45 points. It closed with a gain of 20 points from its previous close.

The long position in the July future contract is undisturbed. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading activity.

STOCK FUTURES

The composition and ranking of the top-10 tradable list had minor changes. The short exit level for Hindalco is placed at Rs 157.80.

Except Bank of India and ONGC, all other counters in the list are in uptrend. Except ACC all other uptrend counters are likely to be under threat for Monday’s trading.

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On the other hand, bull domination on Monday is likely to terminate all the downtrend counters in the list. Buying opportunities exist in Bank of India and ONGC for Monday’s trading. Selling opportunities exist in Reliance Capital, SBI, IDBI, Reliance Industries, Tata Steel, Century Textiles and ICICI Bank. It may be best to sell Reliance Industries, as this counter is in uptrend. Bear move on Monday is likely to revers e the existing trend in this counter.

CASH SEGMENT

The composition and ranking of the top-10 list had minor changes. Except SBI, Infosys and SAIL all other counters in the list are in uptrend. Except ACC and Satyam, all other uptrend counters are likely to be under threat for Monday ’s trading. On the other hand, bull domination on Monday is likely to terminate SAIL in the list. Buying opportunities exist in Infosys and SAIL. The selling opportunities exist in SBI, Reliance Industries, IDBI, Tata Steel, ICICI Bank and BHEL.

The best among the above is to buy Infosys. This counter is in sideways. Bull move on Monday is likely to initiate a fresh uptrend 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.