The Hindu Business Line : Bulls take charge

Bulls dominated trade on Friday. 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 strengthened with additional counters.

NIFTY FUTURES

The August month contract opened with a bull gap of around 31 points from its previous close.

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The August month contract moved within a range of around 53 points. The August month contract closed with a gain of 40 points from its previous close.

Bull domination during the day initiated a fresh uptrend in the August Month Nifty Futures contract.

The long exit and short entry levels are placed quite nearer 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 no changes. However the ranking of the top-10 list had minor changes. Hindalco and ICICI Bank interchanged their positions in the list.

Except Reliance Industries, Reliance Energy, Tata Steel and Hindalco all other counters in the list are in uptrend. All the uptrend counters are under threat for Monday’s trading. T

here are no bear threats for Monday’s trading. A lone buying opportunity is likely to exist in Reliance Energy.

Selling opportunities are likely to exist in Reliance Capital, SBI, Reliance Energy, ACC, IDBI, ICICI Bank and BHEL for Monday’s trading.

The best is likely to be selling in BHEL. 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. Hindalco made its way to top-10 list pushing out Satyam.

Hindalco came secondand Infosys moved from second to fourth position in the list. Reliance Capital, SBI, SAIL, BHEL, Tata Steel and ITC moved one step lower in the list. The short exit level for Satyam is placed at 475.25.

Except Reliance Industries, Hindalco and Infosys all other counters in the list are in uptrend. All the uptrend counters are under threat for Monday’s trading.

On the other hand, bull domination on Monday is likely to terminate Reliance Industries and Infosys.

Buying opportunities are likely to exist in Reliance Industries and Infosys. Selling opportunities are likely to exist in Reliance Energy, Reliance Capital, SBI, SAIL, BHEL, Tata Steel and ITC for Monday’s trading.

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 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.