Financial Daily from THE HINDU group of publications
Tuesday, Jul 13, 2004
THE sentiment reading of the tradable counters stands neutral. Bull domination on Tuesday is likely to change the sentiment reading in their favour.
On the contrary, the sentiment reading is likely to turn bearish.
Nifty futures recommendation: The near month July contract opened two points lower than its previous close and went further down by another nine points. Thereafter, bulls took over and wiped out their early losses.
The July contract moved within a band of 27 points. It closed with a gain of six points with respect to Friday's close.
Bulls were successful in terminating the downtrend in the July contract. The short trade exited with a loss of 34 points. Bullish trigger level for the July contract has now been moved closer to its current level. Bull move on Tuesday has the potential to initiate the uptrend in the July contract. Bearish trigger level for the July contract is placed far away.
Stock futures recommendation: The composition of the top-10 tradable list remains unchanged. The ranking of the list had a minor change. Infosys and ONGC interchanged their positions.
For Tuesday, the downtrend in Reliance and the uptrend in Maruti are likely to be under threat. Selling opportunities are unlikely to exist for Tuesday's trading. Buying opportunities are likely to exist in as much as seven counters.
The best is likely to be the buying in State Bank of India. Bullish trigger level for this counter is placed within a rupee from its last traded price. Bull pressure on Tuesday is likely to trigger the uptrend in State Bank of India.
Cash segment: The composition as well as the ranking of the top-10 tradable list in this segment remains intact. Bulls were successful in triggering the uptrend in the recommended counter - Tata Motors.
Except for Reliance, all the counters in the list are likely to be safe. Bears are unlikely to have any opportunity for Tuesday's trading. Buying opportunities are likely to exist in eight counters.
The best bet for Tuesday's trading is likely to be State Bank of India. This counter is in the sideways mode. Buy level for this counter is placed closer to its current level. Bull move on Tuesday is likely to initiate the uptrend in State Bank of India.
(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 technical analyst and fund management consultant.
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