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K. Premkumar

BULLS managed to gain control of the Friday's trading activity. Neither the bulls nor the bears could gain much from the day's trading. The market sentiment reading of the tradable counters continues to remain bearish. Bull domination on Monday is likely to reduce the bear count by a considerable margin. Otherwise, the prevailing bearish sentiment is likely to continue with added strength.

Nifty futures recommendation: The near month May contract opened with three points higher than the previous close and went further by another 8 points. The intra-day movement in the May contract was around 10 points. It closed with a gain of 8 points with respect to Thursday's close.

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The long position in the May contract remains intact. In the normal course of trading on Monday, this is unlikely to be disturbed. The exit and bearish trigger levels for the May contract remain unchanged.

Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remain unchanged. The top three traded counters in this segment were Satyam Computer, Infosys and State Bank. Trading activity in Tata Engg was quite impressive on Friday with more than 3000 trades.

Bull domination on Monday is likely to terminate the downtrend in Hindustan Petro, Satyam Computer and Wipro. The prevailing uptrend counters in the list are likely to be safe. Buying opportunities are likely to exist in Hindustan Petro and Satyam Computer. A lone selling opportunity is likely to exist in Reliance Industries.

The best bet for Monday's trading is likely to be Satyam Computer. Its bullish trigger level is placed very close to its current level. Bull pressure on Monday is likely to trigger this level.

Cash segment: The composition of the top-10 tradable list in this segment had a change. Bank of Baroda gained entry with the exit of Reliance Industries. The ranking of the list too had a few changes. Wipro moved to the ninth position followed by Hindustan Petro.

The downtrend in NIIT and Reliance Industries is likely to be terminated at Rs 122.75 and Rs 272.05 respectively.

Bull domination on Monday could be a threat to the downtrend in Hindustan Petro, Satyam Computer and Wipro. On the other hand, the uptrend in Bank of Baroda is likely to be under threat. Bulls are likely to have opportunity in Hindustan Petro and Satyam Computer. A lone selling opportunity is likely to exist in Hughes Soft.

The best among these is likely to be Hughes Soft. Its sell level is placed closer to its last traded price. Bear move on Monday is likely to initiate a fresh downtrend 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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