The Hindu Business Line : Bull domination

Bulls dominated during Friday’s trading activity. The sentiment reading of the tradable counters remains bullish. Bear move on Monday is likely to change the sentiment reading in their favour. On the contrary, prevailing bullish sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

The September month contract opened with a bear gap of around 2 points from its previous close. The September month contract moved within a range of around 137 points. The September month contract closed with a gain of 122 points from its previous close.

The long position in the September month Nifty contract is undisturbed. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Monday’s trading.

STOCK FUTURES

The composition of the top-10 tradable list had no changes. However, the ranking of the list had minor changes. Reliance Industries moved from fifth to third position in the list. SBI and Tata Steel moved one step lower in the list.

NTPC and ACC interchanged their positions in the list. The long exit level for BHEL is placed at 1937.95. Except NTPC and ACC all other counters in the list are in uptrend. The uptrend counters Tata Steel, IDBI and Century Textiles are likely to be under threat for Monday’s trading. Buying opportunities are likely to exist in NTPC and ACC.

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Selling opportunities are likely to exist in Tata Steel, IDBI and Century Textiles. The best among the above is likely to be selling in Century Textiles. This counter is in uptrend. Bear move on Monday is likely to reverse the trend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had no changes. However, the ranking of the tradable counters had minor changes. SBI and Tata Steel interchanged their positions.

Except Infosys and HDFC all other counters in the list are in uptrend. The uptrend counter Tata Steel is likely to be under threat for Monday’s trading. Buying opportunities are likely to exist in Infosys and HDFC.

A lone Selling opportunity is likely to exist in Tata Steel. The best is likely to be buying in HDFC.

This counter is in sideways mode. Bull move on Monday is likely to initiate a fresh up 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.