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K. Premkumar

Friday’s trading activity witnessed bear domination. The sentiment reading of the tradable counters changed to bearish.

Bull move on Monday is likely to change the sentiment reading in their favour.

On the contrary, the prevailing bearish sentiment is likely to be strengthened with additional counters.

The August month contract opened with a bear gap of around 54 points from its previous close.

The August month contract moved within a range of around 138 points. The Augustmonth contract closed with a loss of 185 points from its previous close.

Bear domination during the day initiated fresh downtrend in the August Month Nifty Futures contract.

The short exit and long entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading activity.

The composition of the top-10 tradable list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Energy moved from fifth to third position in the list.

Tata Steel and SBI moved one step lower in the list. Hindalco moved from eighth to last position in the list. ICICI Bank and Century Textiles moved one step higher in the list.

Except Reliance Energy all other counters in the top-10 list are in downtrend. The uptrend counter Reliance Energy is under threat for Monday’s trading.

On the other hand, bull domination on Monday is likely to terminate SBI, IDBI and ICICI Bank. Buying opportunities are likely to exist in SBI, IDBI and ICICI Bank. Selling opportunity is likely to exist in Reliance Energy.

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

The composition and the ranking of the top-10 tradable list had minor changes. ITC made its way to top-10 list pushing out IDBI. ITC occupied last position in the list.

Reliance Capital moved from seventh to fourth position, ACC moved from fourth to sixth position, SBI moved from sixth to ninth position, Satyam moved one step higher in the list and Tata Steel moved from last to seventh position in the list.

Except Reliance Energy and ITC all other counters in the top-10 list are in downtrend. The uptrend in Reliance Energy is under threat for Monday’s trading.

On the other hand, bull domination on Monday is likely to terminate Infosys and SBI. Buying opportunities are likely to exist in Infosys and SBI.

Selling opportunity is likely to exist in Reliance Energy.

The best among the above is likely to be buying in Infosys. This counter is in downtrend.

Bull move on Monday is likely to reverse the prevailing 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.

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