Financial Daily from THE HINDU group of publications
Saturday, Apr 23, 2005
Financial Daily from THE HINDU group of publications Saturday, Apr 23, 2005 |
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Markets
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Technical Analysis Initial gains not held K. Premkumar
BULLS extended further pressure over the initial hours of Friday's trading activity. The sentiment reading of the tradable counters stands strongly bullish. Bear domination on Monday is likely to reduce the bull by a considerable margin thereby resulting a change in the sentiment reading. Nifty futures recommendation: The April month contract opened with a bull gap of 18 points and went further by another five points. Later on, bears made a strong comeback and wiped out most of their losses. The April contract moved within a band of 24 points registering an intra-day low of 1941. It closed with a gain of 7 points over the previous close. Initial move led to the initiation of the uptrend in the April contract. Bear move on Monday has the potential to terminate the uptrend in the April contract. Bearish trigger level for the April contract is placed far away and this is unlikely to be triggered on Monday. Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had few changes. Satyam moved to the second position followed by Reliance and Tata Motors. None of the counters in the list is in the downtrend. Bear move on Monday could be a threat to most of the uptrend counters in the list. Selling opportunities are likely to exist in five counters. Buying opportunities are likely to exist in two counters. The best bet for Monday's trading is likely to be the selling in ONGC. This counter is in the sideways mode. Sell level for this counter is placed very close to the last traded value. Bear pressure on Monday is likely to initiate the downtrend in ONGC. Cash Segment: The composition as well as the ranking of the top-10 tradable list remains unchanged. Friday's market action resulted in initiating the uptrend in the recommended counter-State Bank. The exit level for the downtrend in PNB is placed at 380.05. Bull domination on Monday is likely to terminate most of the uptrend counters in the list. On the contrary, the lone downtrend counter-ONGC is likely to be under threat. Bears are likely to have opportunity in State Bank, Tata Motors and Tata Steel. A lone buying opportunity is likely to exist in ONGC. The best among the above is likely to be the selling in Tata Steel. This counter is in the uptrend. Bear move on Monday has the potential to reverse the prevailing uptrend in Tata Steel. (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.
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