Financial Daily from THE HINDU group of publications
Wednesday, Sep 28, 2005
Financial Daily from THE HINDU group of publications Wednesday, Sep 28, 2005 |
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Markets
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Technical Analysis Bulls reign K. Premkumar
BULLS maintained their pressure on Tuesday's trading activity. The day's market action resulted in triggering the uptrend in most of the tradable counters. The sentiment reading stands strongly bullish. However, bear domination on Wednesday has the potential to reduce the bull count to a bare minimum. Nifty futures recommendation: The September month contract lost around eight points in the initial hours of trading. Later on, bulls took charge of the day's proceedings. The September contract moved within a band of 42 points registering an intra-day high of 2594.70. It closed with a gain of 12 points over Monday's close. The long position in the September contract remains intact. The exit level has been moved quite closer to the last traded value. Bear domination on Wednesday has the potential to terminate the uptrend. Bearish trigger level for the September contract is still placed far away. Stock futures recommendation: The composition of the top-10 tradable counters remains unchanged. The ranking of the list had a minor change. ONGC and REL interchanged their positions. Bulls were successful in triggering the uptrend in the recommended counter REL. All the counters in the list are in the uptrend. Bear move on Wednesday is likely to terminate most of the counters in the list. Opportunities are likely to exist in four counters on the short side. The best bet for Wednesday's trading is likely to be the selling in REL. Bear pressure on Wednesday is likely to reverse the prevailing uptrend in this counter. Cash segment: The composition of the top-10 active counters list remains intact. The ranking of the list had few changes. Reliance moved to the third position and ITC to the eighth position. Bear pressure on Wednesday could be a threat to most of the uptrend counters in the list. On the other hand, the lone downtrend counter-Reliance Capital is likely to be terminated. For Wednesday, traders are left with a lone opportunity. This is likely to exist on the short side of Mcdowell. This counter is in the uptrend. The exit and bearish trigger levels for this counter is placed closer to the current level. Bear move on Wednesday has the potential to trigger the downtrend in Mcdowell. (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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