• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

K. Premkumar

BEARS were in total command of Friday's trading activity. Bulls were unable to make any impact during the day's trading. Friday's market action resulted in reducing the bull count by a considerable margin. The sentiment reading of the tradable counters stands neutral. Bear domination on Monday is likely to change the sentiment reading in its favour. On the other hand, the prevailing sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The near month January contract opened with a bull gap of 2 points and went further by another 5 points. Thereafter, bears made a strong comeback and gained control of the day's proceedings. The movement in the January contract was around 25 points. It closed with a loss of 17 points with respect to previous close.

Click here for table

Bear domination during the day led to the termination of the uptrend in the January contract. The long trade exited with a marginal loss of 4 points.

Bearish trigger level for the January contract is placed very close to its current level. Bear pressure on Monday is likely to initiate the downtrend in the January contract. Bullish trigger level for the January contract is placed at a far away level.

Stock futures recommendation: L&T gained entry to the top-10 tradable list with the exit of M&M. Tata Engg moved to the sixth position followed by State Bank and Digital.

The exit level for the uptrend in Ranbaxy is placed at Rs 604.30.

For Monday, all the uptrend counters in the tradable list are likely to be under threat. So, traders holding long positions will have to be cautious.

Selling opportunities are likely to exist in five counters. A lone buying opportunity is likely to exist in L&T.

Selling in Digital is likely to be the best bet for Monday's trading. Its sell level is placed very close to its last traded price. Bear pressure on Monday is likely to trigger this level.

Cash segment: The top-10 tradable list underwent a change. Hexaware Technology gained entry with the exit of Reliance Industries. The ranking of the list remains the same with no major changes.

The exit level for the uptrend in Reliance Industries is placed at Rs 291.95.

Bear pressure on Monday is likely to terminate the uptrend in Hexaware and State Bank. The prevailing downtrend counters in the list are likely to be safe. There is unlikely to exist any buying opportunities for Monday's trading. Selling opportunities are likely to exist in as much as six counters.

The best bet for Monday's trading is likely to be Digital. Its bearish trigger level is placed closer to its current level. Bear move on Monday is likely to initiate the downtrend 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 Chennai-based technical analyst and fund management consultant.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
MFs can invest $1 b in listed foreign cos — Window open also for individuals, corporates

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line