The Hindu Business Line : Bulls prevail

Bear domination on Monday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

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The February contract opened with a bear gap of around 42 points from its previous close. However, bears could not sustain their initial move and gave way to bull domination.

The February contract moved within a range of around 197 points and closed with a gain of around 90 points from its previous close.

The long position in the February Nifty 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 no changes. Reliance Capital, NTPC, SBI, ONGC and BHEL are in uptrend in the top-10 list. Reliance Energy is in downtrend in the top-10 list. Buying opportunities are likely to exist in Reliance Industries, ICICI Bank, Tata Steel and IDBI. The best among the above is likely to be buying in ICICI Bank. This counter is in sideways mode. Bull move on Monday is likely to initiate a fresh uptrend 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 Energy and Reliance Industries interchanged their positions. BHEL and ONGC interchanged their positions. Infosys and IDBI interchanged their positions.

Except Reliance Energy, ONGC, Infosys and IDBI all other counters in the top-10 list are in uptrend.

Bull move on Monday is likely to terminate ONGC and Infosys. Buying opportunities are likely to exist in ONGC, Infosys and IDBI.

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 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.