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Friday, May 07, 2004

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Markets - Technical Analysis


Bulls prevail

K. Premkumar

THE sentiment reading of the tradable counters continued to remain bullish. Bear domination on Friday is likely to change the sentiment reading in its favour.

Nifty futures recommendation: Thursday's market action witnessed bulls in total control of the day's proceedings. The May month contract opened with a bull gap of around six points. The intraday movement was around 22 points. It closed with a gain of 20 points from the previous close.

The bull domination on Thursday resulted in reversal of the downtrend in May contract. The initiated long position is unlikely to be under threat for Friday.

Stock futures recommendation: The composition of the top-10 tradable list remained unchanged. However, ranking of the list underwent a few changes. Tata Motors occupied second position. Infosys occupied fourth position followed by Satyam Computer and Reliance Industries.

The top three traded counters in the list are Tata Steel, Reliance and Tata Motors. Trading activity in L&T witnessed 3,969 trades on Wednesday.

Click here for table

Bear domination on Friday is likely to terminate all the uptrend counters in the tradable list. The lone downtrend counter Tata Steel is out of danger for Friday. GAIL and Reliance Industries are likely have buying opportunities. Selling opportunities are likely to exist in almost six counters in the tradable list.

The best among the above is likely to be the buying in GAIL. This counter is in sideways. Bull pressure on Friday is likely to initiate fresh uptrend in GAIL.

Cash segment: The composition and the ranking of the list underwent minor change. GAIL gained entry in to the list while Bharati Tele moved out. Tata Steel occupied second position and Maruti fifth position. State Bank moved down to seventh position. Union Bank occupied ninth position followed by GAIL. Thursday's market action resulted in triggering the uptrend in the recommended counter Infosys.

The lone downtrend counter Tata Steel is unlikely to be under threat for Friday. Reliance Industries is likely to have buying opportunity for Friday.

Selling opportunities are likely to exist in six counters in the tradable list.

The best among them is likely to be buying in Reliance Industries.

Bull domination on Friday is likely to trigger the 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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