Financial Daily from THE HINDU group of publications
Wednesday, Sep 25, 2002
BEARS controlled major part of Tuesday's trading activity. However, during the wee hours of the day's trading bulls managed to recoup most of their losses. The sentiment reading of the tradable counters stands strongly bearish. Bull domination on Wednesday is likely to reduce the bear count by a substantial margin. Otherwise, the prevailing sentiment is likely to continue with a slight change in its value.
Nifty futures recommendation: September month contract opened with a bear gap of around 4 points. Bears failed to capitalise on it. During the close, bulls made a smart recovery. The September contract closed with a marginal loss of 2 points with respect to Monday's close.
The short position in the September contract remained intact. The same is likely to continue on Wednesday. The exit and bullish trigger level for the September contract are placed quite far away from its last traded value. These levels are unlikely to be triggered on Wednesday.
Stock futures recommendation: The top-10 tradable list underwent a change. Tata Steel gained entry with the exit of ITC. 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 Reliance Industries.
For those still holding short position in Hindustan Lever may do so with the stop loss placed at Rs 176.55.
For Wednesday, the downtrend in ACC, Infosys, MTNL and Tata Steel is likely to be under threat. So, traders holding positions in the above counters will have to be cautious.
Selling opportunities are likely to exist in Digital and Reliance Industries. Buying opportunities are likely to exist in ACC, Infosys, MTNL, Reliance Industries and Tata Steel.
The best among the above is likely to be the selling in Digital. Its sell level is placed quite closer to its current level. Bear move on Wednesday is likely to initiate a fresh downtrend in the counter.
Cash segment: Digital regained entry to the top-10 tradable list with the exit of Hinduja TMT. Aftek Infosys moved to seventh position followed by Digital, BPCL and VisualSoft.
None of the counters in the list is in the uptrend. Except for the downtrend in BPCL and Satyam Computer, all the other counters in the list are likely to be under threat.
Bulls are unlikely to have any opportunity for Wednesday's trading. Selling opportunities are likely to exist in Aftek Infosys, Digital, Polaris Soft and Wipro.
The best bet is likely to be Digital. Its bearish trigger level is placed very close to its last traded price. Bear pressure on Wednesday is likely 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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