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Friday, Sep 27, 2002

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Initial gains not held

K. Premkumar

BULLS were in command of initial hours of Thursday's trading. Thereafter, bears gained control of the day's proceedings and recouped their early losses. Bulls were successful to the extent of reducing the bear count. The sentiment reading of the tradable counters stands neutral. Bear domination on Friday is likely to change the sentiment reading in its favour. On the contrary, the sentiment is likely to turn bullish.

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Nifty futures recommendation: September month contract opened with a bull gap of 4 points and could make no further gains. Bears came back strongly and recouped their day's losses. The movement in the September contract was around 6 points. Neither the bulls nor the bears could gain from the day's trading.

The downtrend in the September contract remained intact. Its exit level is still placed around the same level. Friday being the expiry day for the September contract, fresh entry level on the long side is given for October contract. Bull domination on Friday has the potential to trigger these levels.

Stock futures recommendation: There were no new entries or exits to the top-10 tradable list. Satyam Computer regained its top slot followed by Hindustan Petro.

Except for the downtrend in BPCL and Satyam Computer, all the other counters in the list are likely to be under threat. Friday is going to be the last day of trading for the September contract. The existing positions in the September contract should be held with their respective stop loss market orders. If the stop loss orders are not triggered, then allow the positions to close by it self. Fresh entry levels for all the counters are given for October contract.

Buying opportunities are likely to exist in ACC, Reliance Industries, Tata Engg and Tata Steel. Selling opportunities are likely to exist in ACC, Infosys, MTNL and Reliance Industries.

The best among the above is likely to be the buying in ACC. Its buy level is placed closer to its last traded value. Bull move on Friday is likely to initiate a fresh uptrend in the counter.

Cash segment: The composition as well as the ranking of the top-10 tradable remain intact. Most counters in the list are in the uptrend. Bear domination on Friday could be a threat to most of them. On the other hand, the downtrend in Hindustan Petro is likely to be under threat.

Traders are left with a lone opportunity for Friday's trading. This is likely to exist on the long side of Hexaware Technology. This counter is in sideways trend. Its bullish trigger level is placed quite closer to its last traded price. Bull domination on Friday 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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