The Hindu Business Line : Bull domination

Bear 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 April contract opened with a bull gap of around 32 points from its previous close. The April contract moved within a range of around 194 points and closed with a gain of around 134 points from its previous close.

Bull move during the day initiated fresh uptrend in the Nifty April 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. Tata Steel and ICICI Bank interchanged their position. NTPC and Hindalco interchanged their position.

Except ICICI Bank and SBI all other counters in the list are in uptrend. The uptrend counters Reliance Capital, Reliance Energy and Hindalco 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 ICICI Bank and SBI. Selling opportunities are likely to exist in Reliance Capital, Reliance Energy and Hindalco. The best among the above is likely to be selling in Reliance Capital.

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.

Reliance Industries moved from fourth to second position in the list. ICICI Bank and Reliance Energy moved one step lower in the list. Suzlon and HDFC interchanged their position.

There are five uptrend and three downtrend counters in the top-10 list. Bull move on Monday is likely to terminate the SAIL and HDFC. Buying opportunities are likely to exist in Reliance Industries, SAIL and HDFC.

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