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

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The January contract opened with a bull gap of around 324 points from its previous close. The January contract moved within a range of around 257 points and closed with a gain of around 399 points from its previous close.

The long position in the 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 of the top-10 list had minor changes. MTNL made its way to top-10 list pushing out Bank of India. Ranking of the list had no changes. The short exit level for Bank of India is placed at 405.05.

Reliance Energy, Reliance Industries, ICICI Bank, SBI and ONGC are in uptrend in the top-10 list. NTPC, IDBI, Tata Steel and MTNL are in downtrend in the list. The uptrend counter SBI is 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 exist in Reliance Capital, NTPC, IDBI, Tata Steel and MTNL.

A lone selling opportunity is likely to exist in SBI. The best is likely to be buying in IDBI. This counter is in downtrend. Bull move on Monday is likely to reverse the existing trend in this counter.

CASH SEGMENT

The composition and the ranking of the top-10 tradable list had no changes. Except Reliance Capital, IDBI and ONGC all other counters in the top-10 list are in uptrend. The uptrend counters SBI and BHEL are likely to be under threat for Monday’s trading. However, downtrend in IDBI and ONGC are likely to be undisturbed during Monday’s trading.

A lone buying opportunity is likely to exist in Reliance Capital. The selling opportunities are likely to exist in SBI and BHEL.

The best among the above is likely to be buying in Reliance Capital. This counter is in sideways mode. Bull move on Monday is likely to initiate a fresh uptrend 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.