The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters remain 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

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The January contract opened with a bull gap of around 27 points from its previous close. The contract moved within a range of around 90 points and closed with a gain of around 77 points from its previous close.

The uptrend in the Nifty January contract is intact. 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

The composition and the ranking of the top-10 list had minor changes. SRF made its way to top-10 list pushing out SBI. GAIL moved from fourth to seventh position in the list. Tata Steel, ICICI Bank and MTNL moved one step higher in the list.

All the counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, Reliance Capital, Tata steel, GAIL, SRF and IDBI 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 Reliance Industries, Reliance Capital, Tata steel, GAIL, SRF and IDBI. The best among the above is likely to be selling in GAIL. This counter is in uptrend. Bear move on Monday is likely to reverse the existing 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. GAIL moved from third to eighth position in the list. HDFC moved from eighth to sixth position in the list. Infosys, SAIL and Reliance Energy moved one step higher in the list. The long exit level for Tata Power is placed at 1594.95.

Except Infosys and SAIL all other counters in the top-10 list are in uptrend. The uptrend counters Reliance Industries, Tata Steel, GAIL and Reliance Capital are likely to be under threat for Monday’s trading. On the other hand, bull move on Monday is likely to terminate SAIL.

A lone buying opportunity is likely to exist in SAIL. Selling opportunities are likely to exist in Reliance Industries, Tata Steel, GAIL and Reliance Capital. The best is likely to be selling in GAIL. This counter is in uptrend. Bear move on Monday is likely to change 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.