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K. Premkumar

BEARS exerted further pressure during the initial hours of Friday's trading activity. Thereafter, bulls gained control of the day's proceedings.

Friday's market action resulted in initiating the downtrend in most of the counters in the tradable list. The market sentiment reading of the tradable counters stands strongly bearish with no uptrend counters. Bull domination on Monday is likely to change the sentiment reading in their favour.

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Nifty futures recommendation: During the open, the November month contract went down by 9 points. Bears failed to capitalise on it as they yielded to bull pressure. The November contract moved within a band of 37 points. It closed with a gain of 25 points with respect to Thursday's close.

The short position in the November contract remains intact. However, this is likely to be under threat for Monday. Bullish trigger level for the November contract has also been moved closer to its current level. Bull domination on Monday has the potential to reverse the prevailing downtrend in the November contract.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Reliance Industries moved to the sixth position followed by Tata Power and M&M.

Except for CNX IT, all the other counters in the list are in the downtrend. Bull domination on Monday could be a threat to the prevailing downtrend counters in the list. Buying opportunities are likely to exist in six counters. A lone selling opportunity is likely to exist in CNX IT. The best bet for Monday's trading is likely to be M&M. Its buy level is placed closer to its last traded price. Bull move on Monday is likely to trigger this level.

Cash segment: The composition of the top-10 tradable list underwent a change. Dr Reddy's Lab gained entry with the exit of Oriental Bank of Commerce. SAIL and Reliance Industries interchanged their positions. The downtrend in Oriental Bank is likely to be terminated at Rs 225.50.

Most of the counters in the list are in the downtrend. Bull domination on Monday is likely to terminate the prevailing downtrend counters in the list.

There is unlikely to exist any selling opportunities for Monday's trading. Bulls are likely to have opportunity in as much as eight counters.

Buying in Tata Engg is likely to be the best for Monday's trading. This counter is in the downtrend. Its exit and bullish trigger levels are placed very close to its current level. Bull pressure on Monday is likely 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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