The Hindu Business Line : Bull domination

Bull 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

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The November contract opened with a bear gap of around 95 points from its previous close. However, bears could not sustain their initial momentum and gave way to bulls.

The contract moved within a range of around 270 points. The contract closed with a gain of around 135 points from its previous close.

The short position in the Nifty November contract remains intact. The short exit and long entry levels are placed very nearer to its last traded price. Bull move on Monday is likely to reverse the existing position in the Nifty Futures.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Steel and Tata power interchanged their positions. IDBI and NTPC interchanged their positions.

There are no uptrend counters in the top-10 tradable list. Reliance Energy, Reliance Capital, Reliance Industries, Tata Steel, IDBI and NTPC are the downtrend counters in the list. All the downtrend counters are likely to be under threat for Monday’s Trading. There are no selling opportunities in the list.

There are ample buying opportunities for Monday’s trading. The best is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Monday is likely to trigger the long entry level for this counter.

CASH SEGMENT

There are no changes in composition of the top-10 list. The ranking of the top-10 list had minor changes. State Bank and ICICI Bank interchanged their positions.

ICICI Bank and ONGC are in uptrend. Except Tata Power and State Bank all the other counters are in downtrend.

All the downtrend counters are likely to be terminated during Monday’s trading. There are ample buying opportunities for Monday’s trading. There are no selling opportunities in the top-10 tradable list. The best candidate is buying in Tata Steel.

This counter is in downtrend. Bull domination on Monday is likely to reverse the existing position 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.