The Hindu Business Line : Bull domination

Bulls dominated over Friday’s trading activity. 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 current sentiment reading is likely to be strengthened with additional counters.

NIFTY FUTURES

The November month contract opened with a bull gap of around 49 points from its previous close. The November contract moved within a range of around 235 points.

The November contract closed with a gain of around 181 points from its previous close. The Nifty November contract is initiated a fresh uptrend. 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

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The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes.

SBI moved from sixth to fourth position in the list. Tata Power and Tata Steel moved one step lower in the list. ICICI Bank and IDBI interchanged their positions.

Except Reliance Energy and Reliance Capital all other counters are in uptrend. The uptrend counters Tata Steel and IDBI are likely to be under threat for Monday’s trading. Buying opportunities are likely to exist in Reliance Energy and Reliance Capital. Selling opportunities are likely to exist in Reliance Energy, Reliance Capital, Tata Steel and IDBI.

The best is likely to be buying in Reliance Capital. This counter is in side ways mode. Bull domination on Monday is likely to initiate a fresh uptrend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 list had minor changes. SAIL made its way to top-10 list pushing out ONGC.

SAIL occupied fifth position in the list. ICICI Bank and Infosys moved one step higher in the list.

Tata Steel moved from sixth to ninth position in the list. SBI and BHEL interchanged their positions. Reliance Energy, Reliance Capital, Tata Power and Infosys are in downtrend in the top-10 tradable list. Reliance Industries, SAIL, ICICI Bank, BHEL and Tata Steel are in uptrend in the list. Bull domination on Monday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in all the downtrend and sideways counters.

There are no selling opportunities for Monday’s trading. The best is likely to be buying in Infosys. This counter is in downtrend.

Bull move on Monday is likely to reverse the 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.