The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters changed to 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 December month contract opened with a bull gap of around 19 points from its previous close. The December contract moved within a range of around 142 points and closed with a gain of 109 points from its previous close.

A fresh uptrend was initiated on December contract. 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.

STOCK FUTURES

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The composition and the ranking of the top-10 list had no changes. Except IDBI, Hindalco and BHEL, all other counters in the top-10 list are in uptrend. Except Reliance Energy and ONGC all other uptrend counters are likely to be under thereat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate BHEL. Buying opportunities are likely to exist in IDBI, Hindalco and BHEL. Selling opportunities are likely to exist in Reliance Industries, Reliance Capital, NTPC, IDBI, SBI, Hindalco and ICICI Bank. The best among the above is likely to be buying in BHEL. This counter is in downtrend. Bull move on Monday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Reliance Industries and Reliance Energy interchanged their positions. ICICI Bank and Reliance Capital interchanged their positions. BHEL and SBI interchanged their positions. SAIL and ONGC interchanged their positions.

Except Reliance Industries, ICICI Bank, Reliance Capital and SBI, all the counters in the top-10 list are in downtrend. Except Reliance Capital all other uptrend counters are likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate all the downtrend counters. Buying opportunities are likely to exist in all the downtrend counters.

Selling opportunities are likely to exist in Reliance Industries, ICICI Bank and SBI. The best among the above is likely to be buying in SAIL. 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.