Financial Daily from THE HINDU group of publications
Wednesday, Dec 03, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 03, 2003 |
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Markets
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Technical Analysis Volatile movement K. Premkumar
BULLS exerted further pressure during the initial hours of Tuesday's trading activity. Thereafter bears gained control of the day's proceedings. Neither the bulls nor the bears could gain much from the day's trading. The market sentiment reading of the tradable counters remains bullish with no downtrend counters. Bear domination on Wednesday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be further strengthened. Nifty futures recommendation: During the open the December month contract gained 9 points. Bulls failed to capitalise on it as they yielded to bear pressure. The December contract moved within a band of 33 points. It closed around Monday's close. The day's move had no impact on the recommended levels. The long position in the December contract is now locked up with a decent profit of 32 points. Bear domination on Wednesday has the potential to terminate the uptrend. Bearish trigger level for the December contract is placed quite far away. Stock futures recommendation: The composition of the top-10 tradable list in this segment underwent a change. M&M regained entry with the exit of State Bank. The ranking of the list remains the same with no major changes. Except for the uptrend in Tata Steel, all the counters in the list are likely to be safe. Buying opportunities are likely to exist in ACC, M&M, Maruti and Reliance Industries. Selling opportunities are likely to exist in M&M, Maruti, Tata Steel and Wipro. The best among the above is likely to the buying in Reliance Industries. Its buy level is placed very close to its last traded price. Bull pressure on Wednesday is likely to trigger this level. Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Infosys moved to the fourth position followed by SAIL and Maruti. The uptrend in Punjab Bank and State Bank are likely to be terminated at 180.95 and 465.95. Bear domination on Wednesday is likely to terminate the uptrend in Maruti, SAIL, Tata Steel and Wipro. Bulls are likely to have opportunity in ACC and Reliance Industries. Selling opportunities are likely to exist in five counters. Buying in Reliance Industries is likely to be the best bet for Wednesday's trading. Its bullish trigger level is placed closer to its current level. Bull move on Wednesday 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 Chennai-based technical analyst and fund management consultant.
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