Financial Daily from THE HINDU group of publications
Wednesday, Oct 27, 2004
TUESDAY'S trading witnessed volatile movement. Neither bulls nor bears could gain from the day's trading activity. The sentiment reading of the tradable counters remains bearish. Bull domination on Wednesday is likely to change the sentiment reading in its favour.
On the other hand, it is likely to continue with a slight change in the reading.
Nifty futures recommendation: The October contract opened around previous close and made a low of 1751.35. However, bulls made a comeback during the latter part of trading.
The October contract moved within a band of 34 points. It closed higher with a gain of around 22 points over the previous close.
Bull pressure during the day led to the termination of the downtrend in the October contract. Further bull move on Wednesday is likely to initiate fresh uptrend in the October contract. However, selling level is placed quite far away. It is unlikely to be triggered during Wednesday's trading.
Stock futures recommendation: The composition as well as the ranking of the top-10 tradable list remains unchanged. Reliance, Tata Steel and Satyam were the top three traded counters in this segment.
Except Satyam Computer, all the downtrend counters in the list are under threat. Bear pressure on Wednesday is likely to terminate the uptrend counters in the list.
Bearish opportunities are likely to exist in four counters. Bulls are likely to have opportunity in five counters in the list.
The best is likely to be buying in ONGC. The counter is in sideways. Bull move on Wednesday is likely to initiate fresh uptrend in this counter.
Cash segment: There were no new entries or exits to the top-10 tradable list. However, the ranking of the list had few changes. Infosys occupied second position and Satyam Computer third position in the list.
Tata Motors and Maruti interchanged their positions.
Both the uptrend counters in the list are likely to be under threat for Wednesday. Bull pressure on Wednesday is likely to terminate all the downtrend counters in the list.
Bears are unlikely to have any opportunity for Wednesday's trading. Buying opportunities are likely to exist in almost seven counters in the tradable list.
The best bet is likely to be buying in Wipro.
Bull domination on Wednesday has the potential to reverse the prevailing downtrend in Wipro.
(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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