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: The July month contract opened with a bull gap of 42 points from its previous close. The July month contract moved within a range of around 23 points. The July month contract closed with a gain of 44 points from its prev ious close.

The long position in the July month contract is undisturbed. The long exit and short entry levels are placed quite far away from 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. Hindalco made its way to top-10 list pushing out BHEL. Hindalco occupied last position in the list. Reliance Industries and Century Textiles interchanged their position in the list. The long exit level for BHEL is placed at 1628.45

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Except Century Textiles all other counters in the top-10 list are in uptrend. Except Tata Steel, Bank of India and Hindalco 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 Century Textiles. Buying opportunities is likely to exist in Century Textiles. Selling opportunities are likely to exist in Reliance Capital, SBI, IDBI, ACC, Reliance Industries and ICICI Bank. The best is likely to be selling in SBI. This counter is in uptrend. Bear move on Monday is likely to reverse the existing trend in this counter.

Cash segment: The composition and the ranking of the top-10 tradable list had minor changes. SAIL made its way to top-10 list pushing out TCS. SAIL occupied fourth position in the list. SBI and ACC interchanged their position in the li st. IDBI and ICICI Bank moved two steps lower in the list. Tata Steel and Satyam moved one step lower in the list.

Except Infosys all other counters in the list are in uptrend. In the uptrend counters, ACC, SBI, Reliance Industries, IDBI and ICICI Bank are under threat for Monday’s trading. On the other hand, Bull domination on Monday is likely to terminate Infosys in the list. Buying opportunities is likely to exist in Infosys. The selling opportunities are likely to exist in ACC, SBI, Reliance Industries, IDBI and ICICI Bank. The best among the above is likely to be selling in SBI. 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.