The Hindu Business Line : Bulls prevail

BULLS gained control of Thursday's trading activity. The sentiment reading of the tradable counters stands bullish. Bear domination on Friday is likely to reduce the bull count by a considerable margin, thereby, resulting change in the sentiment reading. On the other hand, the bullish sentiment is likely to be further strengthened.

Nifty futures recommendation: The July contract opened two points higher than the previous close and made steady gains over the course of the day's trading. Bears were unable to make any impact on Thursday's trading. The July contract moved within a band of 22 points. It closed with a gain of around 15 points over Wednesday's close.

Click here for table

Thursday's market action resulted in initiating the uptrend in the July contract.

In the normal course of trading on Friday, the uptrend is unlikely to be disturbed. Bearish trigger level for the July contract is placed quite far away.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters list remain unchanged. The positions in the expired June contract will be automatically closed out with the respective underlying closing values. None of the counters in the list is in the downtrend. Bear move on Friday could be a threat to the prevailing uptrend counters.

Buying opportunities are likely to exist in five counters. Selling opportunities are likely to exist in seven counters. For Friday, the best bet is likely to be the buying in Tata Motors. Bullish trigger level for this counter is placed just above the last traded value. Bull pressure on Friday is likely to trigger the uptrend in Tata Motors.

Cash segment: IDBI, IPCL and Reliance Energy gained entry to the list with the exit of Hindustan Lever Maruti and SAIL. The uptrend in Hindustan Lever is likely to cease at Rs 160.55. The downtrend in Maruti and SAIL is likely to be terminated at Rs 471.55 and Rs 51.30 respectively. For Friday, most of the counters in the list are likely to be under threat. Four opportunities are likely to exist in either side of trading. Selling in IPCL is likely to be the best for Friday's trading. This counter is in sideways mode. Sell level for this counter is placed quite closer to the current level. Bear move on Friday is likely to initiate the downtrend in IPCL.

(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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Diversified funds fail to match the recent Sensex surge

Grasim sells 7.39 pc stake in Century Enka

Bulls prevail

Transchem up on de-merger plan

Small reversal likely in ITC, HPCL

DEG starts mopping up of Agro Dutch Ind stocks

Media stocks up on FDI announcement

Yash Papers launches public issue to shore up operations