The Hindu Business Line : Bears prevail

Friday’s trading activity witnessed bear pressure. However, 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 continue undisturbed.

NIFTY FUTURES

The September month contract opened with a bull gap of around nine points from its previous close. However, bulls were not able to sustain their initial momentum and gave way to bear pressure. The September month contract moved within a range of around 47 points. The September month contract closed with a loss of around 23 points from its previous close.

Click here for table

The long position in the September month contract is undisturbed. The long exit and short entry levels are placed nearer to its last traded price. Bear domination on Monday is likely to reverse the prevailing trend in Nifty September month contract.

STOCK FUTURES

The composition and the ranking of the top-10 tradable list had minor changes. Tata Motors made its way to top-10 list pushing out NTPC. Reliance Capital moved from first to third position in t he list. Tata Steel and Reliance Industries moved one step higher in the list. IDBI and SBI interchanged their positions. The long exit level for NTPC is placed at 176.30.

All the counters in the list are in uptrend. Except IDBI and Reliance Energy all other counters are likely to be under threat for Monday’s trading. There are no buying opportunities for Monday’s tradi ng. Selling opportunities are likely to exist in all the counters except IDBI and Reliance Energy. The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Monday is likely to reverse the prevailing trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However the ranking of the top-10 list had minor changes. IDBI and Reliance Energy interchanged their positions. BHEL and Infosys interchanged their positions. The short exit level for Satyam is placed at 455.05.

All the counters in the list are in uptrend. Except IDBI all other counters are likely to be under threat for Monday’s trading. There are no buying opportunities for Monday’s trading. Selling opportunities are likely to exist in all the counters except IDBI.

The best among the above is likely to be selling in Reliance Industries. This counter is in uptrend. Bear move on Monday is likely to trigger the short position in Reliance Industries.

(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.