The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. However, the sentiment reading of the tradable counters remains bearish. Bull domination 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 March contract opened with a bear gap of around 31 points from its previous close. However, bears could not sustain their initial movement and gave way to bull domination during the later part of the day’s trading.

The March contract moved within a range of around 193 points and closed with a gain of around 157 points from its previous close.

Bull move during the day reversed the downtrend in the Nifty March 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

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. ICICI Bank and SBI interchanged their position. Infosys and BHEL interchanged their position.

Except Reliance Energy, Reliance Industries, ICICI Bank and NTPC all other counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate all the downtrend counters in the list except Hindalco.

Buying opportunities are likely to exist in Reliance Capital, Tata Steel, SBI, Infosys and BHEL.

There are no selling opportunities for Monday’s trading. The best is likely to be buying in Reliance Capital. This counter is in downtrend. Bull 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. SBI and BHEL interchanged their position.

Except Reliance Industries, Reliance Energy and ICICI Bank, all other counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate all the downtrend counters except SAIL. Buying opportunities are likely to exist in Reliance Capital, SBI, Suzlon, BHEL, Tata Steel and HDFC.

There are no selling opportunities for Monday’s trading. The best is likely to be buying in Reliance Capital. 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.