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Thursday, Nov 21, 2002

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Restricted movement

K. Premkumar

BULLS were in control of the initial hours of Wednesday's trading. However, bears managed to recoup most of the their losses during the wee hours of the day's trading. The market sentiment reading of the tradable counters continues to favour the bulls. Bear domination on Thursday is likely to change the sentiment reading in its favour. On the other hand, the prevailing sentiment is likely to continue with a slight change in its value.

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Nifty futures recommendation: During the initial hours of trading, the near month November contract gained 9 points. Thereafter, bears took over and recovered their early losses. The movement in the November contract was around 11 points. It closed with a marginal gain of 3 points with respect to Monday's close.

The exit level for the long position in the November contract is out of the danger zone. The position is locked up with a decent profit of 16 points. Both the exit and bearish trigger levels for the November contract are placed far away.

Stock futures recommendation: Dr Reddy's Lab gained entry to the top-10 tradable list with the exit of ACC. The ranking of the list remains unchanged. Trading activity in Hindustan Petro was very hectic with more than 2,700 trades. The exit level for the uptrend in ACC is placed at Rs 143.95.

Bear domination on Thursday could be a threat to the uptrend in Dr Reddy's Lab, Reliance Industries, Tata Engg and Tata Steel. On the contrary, all the downtrend counters are likely to be under threat.

Bears are likely to have opportunity in Dr Reddy's Lab, Reliance Industries, Tata Engg and Tata Steel. A lone buying opportunity is likely to exist in BPCL.

The best bet for Thursday's trading is likely to be the selling in Dr. Reddy's Lab. This counter is in the uptrend. Its exit and sell levels are placed closer to its last traded value. Bear move on Thursday is likely to reverse the prevailing uptrend in this counter.

Cash segment: The composition of the top-10 tradable list underwent a change. Aftek Infosys gained entry with the exit of Hindustan Petro. However, the ranking of the list remains intact.

The exit level for the downtrend in Hindustan Petro is placed at Rs 208.05.

Bear domination on Thursday could be a threat to the uptrend in Aftek Infosys, Mastek, Reliance Industries and Satyam Computer. The prevailing downtrend counter Polaris Soft is likely to be safe.

Selling opportunities are likely to exist in Reliance Industries and Satyam Computer. A lone buying opportunity is likely to exist in HCL Tech.

The best among the above is likely to be the buying in HCL Tech. Its bullish trigger level is placed very close to its last current. Bull pressure on Thursday 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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