Financial Daily from THE HINDU group of publications
Saturday, Sep 20, 2003
Financial Daily from THE HINDU group of publications Saturday, Sep 20, 2003 |
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Markets
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Technical Analysis Volatile movement K. Premkumar
BEARS exerted further pressure during the initial hours of Friday's trading activity. Thereafter, bulls took over and gained control of the day's proceedings. However, the sentiment reading of the tradable counters stands mildly bearish. Bull domination on Monday is likely to change the sentiment reading in their favour. Otherwise, the prevailing sentiment is likely to continue with a slight change in its value. Nifty Futures Recommendation: The near-month September contract moved violently on Friday. Initially, the September contract lost around 18 points. Later on, bulls made a strong comeback and recouped their entire losses. Bulls gained substantially from the day's trading. The September contract closed with a gain of 32 points with respect to previous close. Initial bear move led to the initiation of the downtrend in the September contract. The initiated downtrend is likely to be under threat as the exit is placed just one point above its closing value. Bullish trigger level for the September contract is still placed far away. Stock Futures Recommendation: There were no new entries or exits to the top-10 tradable list. The ranking of the list had a minor change. Infosys and State Bank interchanged their positions. None of the counters in the list are in the uptrend. Except for the downtrend in Hindustan Petro, all the other counters in the list are likely to be under threat. Bears are unlikely to have any opportunity for Monday's trading. Buying opportunities are likely to exist in BPCL, Infosys, Ranbaxy and Reliance Industries. The best among the above is likely to be Infosys. Its buy level is placed closer to its current level. Bull move on Monday is likely to trigger this level. Cash Segment: The composition as well as the ranking of the top-10 tradable list remains intact. Bull domination on Monday is likely to terminate the downtrend in Reliance Industries and State Bank. The lone uptrend counter- Hindustan Petro is likely to be safe. Buying opportunities are likely to exist in BPCL, Infosys, Reliance Industries and Satyam Computer. A lone selling opportunity is likely to exist in Lupin Lab. The best bet is likely to be the buying in Infosys. Its bullish trigger level is placed very close to its last traded price. Bull pressure on Monday is likely 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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