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Bull onslaught

K. Premkumar

RIGHT from the initial hours of Thursday's trading, the bulls were in total control of the market. However, the trend in the index remained sideways. The movement in Nifty was around 26 points.

Bears were left stranded as the bulls capitalised the day's entire move. Nifty closed with a gain of around 25 points with respect to Wednesday's close. The market sentiment reading of the tradable counters remained bullish.

For Friday, a bull move is likely to initiate a fresh uptrend in the index, as the bullish trigger level is placed quite closer to its current level. Bull domination would change the sentiment reading strongly in favour of the bulls. Else it is likely t o remain the same with a slight change in its value.

Index futures recommendation: Trading activity on Thursday in the futures segment was very impressive as the volumes recorded a new-high. In the nearby July futures contract, the traded volume crossed five lakhs. The total volume with the three contracts put together accounted for more than seven lakhs.

Bulls gained handsomely from the day's trading. The movement in the nearby July contract was around 19 points. The July contract closed with a gain of 20 points with respect to Wednesday's close.

The exit for the long position in both the target and non-target based style of trading is at break-even level. The uptrend in both the styles of trading is likely to continue on Friday. Since the exit and bearish trigger levels for both the styles of tr ading are placed quite far off from the current level.

Scrip recommendation: The top-20 list as well as the ranking of the tradable counters remains unchanged.

The market sentiment reading of the tradable counters stands bullish. Bull domination on Friday would further strengthen the prevailing sentiment. On the other hand, it is likely to remain the same.

Further bull pressure on Friday is likely to terminate the downtrend in SSIL.

In case of bear domination, the uptrend in Global Tele is likely to be under threat. Traders holding positions in the above two counters will have to closely monitor their price movements.

Buying opportunities for the bulls are likely to exist in NIIT, State Bank of India and SSIL. Selling opportunities are likely to exist in Global Tele and VSNL. The best bet for Friday's trading is likely to be the buying in NIIT.

The counter at present is in the sideways trend. Its buy trigger level is placed quite closer to its last traded value. Bull move on Friday has the potential to initiate a fresh uptrend 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 Chennai-based technical analyst and fund management consultant.