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Tuesday, Jun 25, 2002

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Marginal loss

K. Premkumar

INITIAL hours of Monday's trading witnessed a mild bear domination. Later on, bulls gained control and recouped their losses. Bears managed to gain marginally from the day's trading. The sentiment reading of the tradable counters stands mildly bearish. Bull domination on Tuesday is likely to change the sentiment reading in their favour. On the other hand, the sentiment reading is likely to turn strongly bearish.

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Nifty futures recommendation: The near month June contract opened with a bear gap of 5 points and went further down by another 3 points. Thereafter, bulls took over and recovered their early losses. Neither the bulls nor the bears could gain from the day's trading. The movement in the June contract was around 9 points.

The downtrend in the June contract remained intact. The exit level for the same is placed just one point above Monday's close.

Bull pressure on Tuesday is likely to terminate the downtrend. Bullish trigger level for the June contract remains unchanged.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable counters remains undisturbed. Bull domination on Tuesday could be a threat to the downtrend in Infosys, MTNL and Satyam Computer. On the contrary, the uptrend in Tata Engg and Tata Steel are likely to be under threat.

Buying opportunities are likely to exist in BPCL, Hindustan Petro and Ranbaxy. A lone selling opportunity is likely to exist in Tata Engg.

The best among the above is likely to be Ranbaxy. The same counter was recommended for Monday's trading. Bulls failed to initiate the uptrend in that counter. Its buy level is now placed closer to its current level. Bull move on Tuesday is likely to initiate the uptrend.

Cash segment: The top-10 tradable counters in the cash segment remain unchanged. The ranking of the list underwent a few changes. Infosys moved to fourth position followed by GTL and Polaris Soft.

Except for the downtrend in GTL, all the other downtrend counters are likely to be under threat from the bulls. Bear domination is likely to terminate the uptrend in Digital. Bulls are likely to have opportunity in Aftek Infosys, NIIT and Visual Soft.

Selling opportunities are likely to exist in NIIT and Visual Soft. Buying in NIIT is likely to be the best for Tuesday's trading. Its bullish trigger level is placed quite closer to its last traded price. Bull domination on Tuesday has the potential to trigger this level.

(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.

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