The Hindu Business Line : Initial gains not held

INTRA-day bear pressure of Friday's trading activity led to the termination of the uptrend in most of the counters in the list. The sentiment reading of the tradable counters stands mildly bullish. Bear domination on Monday is likely to change the sentiment reading to bearish. Otherwise, the prevailing bearish sentiment is likely to continue with added strength.

Nifty futures recommendation: The near month May month contract opened around the previous close and made steady gains during the day's trading. Bears managed to gain control during the mid-session but later succumbed to the underlying bull pressure. The May contract moved within a band of 35 points. It closed with a gain of 29 points over Thursday's close.

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The long position in the May contract remains intact. The exit and bearish trigger level for the May contract are placed around the same level. These levels are placed slightly away from the current level. In the normal course of trading on Monday, these levels are unlikely to be triggered.

Stock futures recommendation: The composition of the top-10 active counters list remains unchanged. The ranking of the list had some changes. Infosys moved to the fourth position and Bank of India moved to the seventh position. The short position in Polaris is likely to terminate at 96.05.

Bear move on Monday is likely to terminate the uptrend in Bank of India, Infosys and Reliance. On the other hand, the downtrend in Arvind Mill is likely to be under threat. For Monday, eight opportunities are likely to exist on either side of trading. The best bet is likely to be the buying in State Bank. Bullish trigger level for this counter is placed very close to the last traded value. Bull pressure on Tuesday is likely to trigger the uptrend in State Bank.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a minor change. Maruti and Wipro interchanged their positions.

For Monday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in six counters. Selling opportunities are likely to exist in seven counters. Buying in State Bank is likely to be the best for Monday's trading. This counter is in the sideways mode. Buy level for this counter is placed within two rupees from the closing price. Bull move on Monday is likely to initiate the uptrend in State Bank.

(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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