Financial Daily from THE HINDU group of publications
Wednesday, Nov 06, 2002
TUESDAY'S market movement stands restricted. Neither bulls nor bears could gain much from the days activity. However, the sentiment reading of the tradable counters stands neutral. Bull domination on Thursday is likely to turn the sentiment reading in its favour. On the contrary, sentiment is likely to change bearish.
Nifty futures recommendation: The market opened with a bull gap of 1 point. However, bulls could not sustain their hold. Bears regained their early losses during the course of the trading. Market movement during the day was around 9 points. The November contract closed for the day with a loss of around 2 points with respect to previous close.
The uptrend in the November contract is left undisturbed. Its exit and short levels are placed quite far. It is unlikely to be triggered in the normal course of trading on Thursday.
Stock futures recommendation: The top-10 list underwent a few changes. MTNL has gained entry in place of Dr Reddy's. Reliance moved to second place replacing Infosys, while Tata Steel and Ranbaxy interchanged their rankings. Satyam Computer, Infosys and Reliance Industries are the three most actively traded counters in this segment.
Bull domination on Thursday could be a threat to the downtrend in Digital and Ranbaxy. On the other hand, uptrend in Infosys, Tata Engg and Tata Steel is likely to be under threat.
Bears are likely to have opportunity in as much as six counters. Digital, Ranbaxy and Reliance hold opportunities for buying during Thursday's trading activity.
The best is likely to be the selling in MTNL. It is in sideways mode, its sell level is placed quite closer to its last traded price. Bear pressure on Thursday is likely to trigger the level in this counter.
Cash segment: The top-10 tradable list in this segment had minor changes. Polaris Soft and Reliance Industries moved to third and fourth positions replacing Mastek and Infosys in their rankings.
All the uptrend counters except Satyam Computer are under threat. Digital, HCL Tech, Mastek and Polaris Soft are likely to be exited in case of bull pressure on Thursday.
Digital, Mastek, Reliance Industries, HCL Tech and Wipro are likely to have buying opportunities. Selling opportunities are likely to exist in Reliance Industries and VisualSoft.
Wipro is likely to be the best bet for Thursday's trading. Bull domination on Thursday has the potential to initiate a fresh uptrend in this 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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