The Hindu Business Line : Bull onslaught

BULLS extended their dominance over Friday's trading. Bears were unable to make any impact during the day's trading. The market sentiment reading of the tradeable counters remains bullish. Bear domination on Monday is likely to neutralise the prevailing sentiment. Otherwise, the prevailing bullish sentiment is likely to continue with added strength.

Nifty futures recommendation: The near month September contract opened two points above previous close and went further by another 26 points. Bulls capitalised the day's entire move leaving the bears with no opportunity to recover. The September contract closed higher with a strong bullish note.

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Bull domination led to the initiation of the uptrend in September contract. The initiated uptrend is unlikely to be disturbed on Monday. The exit and bearish trigger levels for the September contract are placed far away from its last traded value.

Stock futures recommendation: There were no new entries or exits to the top-10 tradeable list in this segment. Hindustan Petro moved to the second position and Infosys to the sixth position. Trading activity in Hindustan Lever was quite hectic on Friday with more than 4800 trades.

Bull domination on Monday is likely to terminate the downtrend in ACC and State Bank. In case of bear domination, the uptrend in CNX IT and Reliance Industries is likely to be under threat. There is unlikely to exist any selling opportunities for Monday's trading. Buying opportunities are likely to exist in ACC, Ranbaxy, State Bank and Tata Motors.

Best among the above is likely to be Tata Motors. Its buy level is placed close to its current level. Bull pressure on Monday is likely to trigger this level.

Cash segment: The composition of the top-10 tradeable list in this segment had a change. VisualSoft gained entry with the exit of ACC. The ranking of the list had some changes. Infosys moved to second position followed by Satyam Computer, Tata Steel and Hindustan Petro.

The downtrend in ACC and the uptrend in Digital are likely to be terminated at Rs 216.60 and Rs 532.45 respectively.

Bear domination on Monday will be a threat to uptrend in Reliance Industries and SAIL. On the other hand, downtrend in State Bank is likely to be terminated. Bears are unlikely to have any opportunity for Monday's trading. Buying opportunities are likely to exist in State Bank and Tata Motors.

Between the two, the best is likely to be State Bank. This counter is in the downtrend. Its exit and bullish trigger levels are placed close to its last traded price. Bull move on Monday has the potential to reverse the prevailing 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.

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