Financial Daily from THE HINDU group of publications
Wednesday, Jul 10, 2002
BULLS failed to extend their pressure over Tuesday's trading. Stock prices moved within a narrow band. Bears were successful to the extent of terminating a few uptrend counters. The sentiment reading of the tradable counters stands neutral. Bull domination on Wednesday is likely to change the sentiment reading in their favour. On the other hand, the prevailing sentiment is likely to continue with a slight change in its value.
Nifty futures recommendation: Trading activity was quite dull in the July contract with less than 1300 trades. It moved within a close band of 5 points. Neither the bulls nor the bears could gain from the day's trading. July contract closed one point below previous close.
Bearish trigger level for the July contract has been moved closer. It is now placed just 3 points away from its last traded value. Bear move on Wednesday is likely to initiate the downtrend. Bullish trigger level remains unchanged and this is unlikely to be triggered.
Stock futures recommendation: The composition and the ranking of the top-10 counters remained intact. Bear domination on Wednesday is likely to terminate the uptrend in Infosys and Reliance Industries. On the contrary, the downtrend in Tata Steel is likely to be terminated.
Buying opportunities are likely to exist in BPCL, Digital, Hindustan Petro, M&M, Tata Engg and Tata Steel. A lone selling opportunity is likely to exist in M&M.
The best bet for Wednesday's trading is likely to be Hindustan Petro. Its buy level is placed very close to its last quoted price. Bull pressure on Wednesday is likely to trigger this level.
Cash segment: The top-10 tradable list in the cash segment underwent a change. NIIT regained entry with the exit of Zee Tele. The ranking of the list remains the same with no major changes.
Bull domination on Wednesday could be a threat to the downtrend in Aftek Infosys and GTL. On the other hand, the uptrend in NIIT is likely to be under threat.
Bears are likely to have opportunity in Infosys and Polaris Soft. A lone buying opportunity is likely to exist in Digital. The best among the above is likely to be in Infosys. Its bearish trigger level is placed quite closer to its current level. Bear move on Wednesday is likely to initiate the downtrend in the 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.
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