The Hindu Business Line : Bull domination

Friday’s trading activity witnessed bull domination. However, the sentiment reading of the tradable counters changed to bearish. Bull move on Monday is likely to change the sentiment reading in their favour.

On the contrary, the current sentiment is likely to be strengthened with additional counters.

NIFTY FUTURES

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The February contract opened with a bull gap of around 38 points from its previous close. The February contract moved within a range of around 288 points and closed with a gain of around 230 points from its previous close.

Bull move during the day initiated fresh uptrend in February Nifty contract. 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 activity.

STOCK FUTURES

The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. SBI and IDBI interchanged their position.

Reliance Energy, ICICI Bank, SBI and IDBI are in downtrend in the top-10 list. Tata Steel and ONGC are in uptrend in the top-10 list. Bull move on Monday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in all the downtrend and sideways counters.

There are no selling opportunities for Monday’s trading. The best is likely to be buying in MNTL. This counter is in sideways mode. Bull move on Monday is likely to initiate a fresh uptrend in this counter.

CASH SEGMENT

The composition of the top-10 tradable list had minor changes. ITC made its way to top-10 list pushing out Suzlon. The ranking had no changes. The short exit level for Suzlon is placed at 325.05.

Except ICICI Bank, SAIL, ONGC and ITC all other counters in the top-10 list are in downtrend. Bull move on Monday is likely to terminate all the downtrend counters in the list. Buying opportunities are likely to exist in Reliance Industries, Reliance Energy, Reliance Capital, IDBI, SBI and BHEL. There are no selling opportunities for Monday’s trading. The best among the above is likely to be buying in Reliance Industries. This counter is in downtrend. Bull move on Monday is likely to reverse the 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.