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Friday, Sep 06, 2002

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Bulls prevail

K. Premkumar

BULLS were in control of Thursday's trading activity. Their dominance resulted in reducing the bear count by a substantial margin. The market sentiment reading of the tradable counters stands bullish. Bear domination on Friday is likely to neutralise the sentiment reading. On the other hand, the prevailing bullish sentiment is likely to continue with a slight in its value.

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Nifty futures recommendation: The near month September contract opened with a bull gap of 2 points and went further by two points. Later on, bears managed to recoup their day's losses. The movement in the September contract was around 10 points. It closed with a marginal loss of 2 points with respect to previous close.

Initial bull move led to the reversal of the downtrend in the September contract. The exit level for the initiated uptrend is in the danger zone. It is placed just 4 points away from its last traded value. Bearish trigger level for the September contract is placed quite far away from its current level.

Stock futures recommendation: Hindustan Lever regained entry to the top-10 tradable list with the exit of ITC. However, the ranking of the list remains the same with no major changes. Satyam Computer continues to dominate the trading activity in this segment followed by Infosys and Digital. Trading activity in Tata Engg was very impressive on Thursday.

Bear domination on Friday is likely to terminate the prevailing uptrend counters in the list. The lone downtrend counter MTNL is likely to be safe.

There is unlikely to be any buying opportunities for Friday's trading. Selling opportunities are likely to exist in BPCL, Hindustan Lever, Hindustan Petro and Reliance Industries.

The best bet for Friday's trading is likely to be in BPCL. The counter is in the sideways mode. Its bearish trigger level is placed closer to its last traded price. Bear pressure on Friday is likely to initiate the downtrend in the counter.

Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list had some changes. Aftek Infosys and NIIT interchanged their positions and Hinduja TMT moved to ninth position.

None of the counters in the list is in the downtrend. Except for Aftek Infosys, all the other counters in the list are likely to be under threat.

Traders are left with a lone opportunity for Friday's trading. That is likely to exist on the short side of Mastek. This counter is in the sideways mode. Its sell level is placed quite closer to its current level. Bear domination on Friday has the potential to initiate a fresh 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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