Financial Daily from THE HINDU group of publications
Friday, Jun 17, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 17, 2005 |
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Markets
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Technical Analysis Narrow movement K. Premkumar
THURSDAY'S trading activity witnessed a range-bound movement. The day's market action reduced the bull count marginally. However, the sentiment reading of the tradable counters remains bullish. Bear domination on Friday is likely to change the sentiment reading in its favour. Otherwise, the prevailing bullish sentiment is likely to be further strengthened. Nifty futures recommendation: The near-month June contract opened three points above the previous close and went further by another two points. Later on, bears took charge of the day's proceedings. The June contract moved within a band of 22 points. It closed with a loss of eight points over Wednesday's close. The uptrend in the June contract remains intact. However, this is likely to be under threat for Friday. Bearish trigger level for the June contract has also been moved closer to the current level. Bear domination on Friday has the potential to reverse the prevailing uptrend in the June contract. Stock futures recommendation: The composition of the top-10 active counters list underwent a change. NTPC gained entry with the exit of ONGC. Reliance, Tata Steel and State Bank were the top three traded counters in this segment. The exit level for the short position in ONGC is placed at 930.05. For Friday, most of the counters in the list are likely to be under threat. Five opportunities are likely to exist on either side of trading for Friday. The best is likely to be the selling in State Bank. Bearish trigger level for this counter is placed quite closer to the last traded value. Bear move on Friday is likely to initiate a fresh downtrend in State Bank. Cash segment: The composition of the top-10 tradable list had a change. Wipro gained entry with the exit of Tata Motors. The ranking of the list had a few changes. The downtrend in Maruti and Tata Motors is likely to terminate at Rs 442.05 and Rs 429.05 respectively. Bear move on Friday could be a threat to most of the uptrend counters in the list. On the contrary, the lone downtrend counter-Ranbaxy is likely to be terminated. Selling opportunities are likely to exist in seven counters. Buying opportunities are likely to exist in two counters. For Friday, the best bet is likely to be the selling in State Bank. This counter is in the sideways mode. Sell level for this counter is placed three rupees from the last traded price. Bear pressure on Friday is likely to trigger the downtrend 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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