The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. The sentiment reading of the tradable counters is bullish. Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, the prevailing bullish sentiment is likely to be strengthened.

NIFTY FUTURES

The September month contract opened with a bull gap of around 22 points from its previous close. The September month contract moved within a range of around 72 points. The September month contract closed with a gain of around 67 points from its previous close.

Bull move during the day initiated long position in the September month contract. The long exit & short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading activity.

STOCK FUTURES

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The composition of the top-10 tradable list had no changes. However ranking of the list had minor changes. Reliance Industries occupied first place followed by Reliance Capital & State Bank of India. Century Textiles is the lone downtrend counter in the list. Bull domination on Monday is likely to reverse the prevailing trend in Century Textiles.

On the other hand except Reliance Industries, Tata steel, IDBI all the other uptrend counters in the list are likely to be terminated. Buying opportunities are likely to exist in Reliance Capital, Reliance Energy & Century Textiles. Selling opportunities are likely to exist in State Bank of India, Reliance Energy, ICICI Bank, BHEL & Infosys.

The best among the above is likely to be buying in Reliance Capital. This counter is in sideways mode. Bull move on Monday is likely to initiate fresh uptrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list remained undisturbed. Ranking of the list underwent few changes. ICICI Bank & State Bank of India interchanged their rankings while Reliance Capital & Infosys interchanged the rankings in the top-10 list.

All the counters in the list are in uptrend. Except Reliance Industries, Tata Steel, Reliance Capital & IDBI all the other uptrend counters are likely to be under threat for Monday’s trading.

There are no buying opportunities for Monday’s trading. Selling opportunities are likely to exist in all the counters except Reliance Industries, Tata Steel, IDBI & Reliance Capital.

The best among the above is likely to be selling in Infosys. This counter is in uptrend. Bear move on Monday is likely to reverse the prevailing trend in this counter.

(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.