Financial Daily from THE HINDU group of publications
Friday, Nov 05, 2004
THURSDAY'S trading activity witnessed range bound movement. Neither the bulls nor the bears could gain much from the day's trading. The sentiment reading of the tradable counters remains strongly bullish. Bear domination on Friday is likely to change the sentiment reading to bearish.
Nifty Futures Recommendation: The November month contract opened five points above its previous close and went further by another four points.
Thereafter, it moved within that band registering an intra-day low of 1834.30. The November contract closed with a loss of four points with respect to Thursday's close.
The day's move had no impact on the recommended levels. The exit and bearish trigger level for the November contract is placed at the same level.
In the normal course of trading on Friday, the uptrend in the November contract is likely to continue.
However, bear domination on Friday has the potential to reverse the prevailing uptrend in the November contract.
Stock Futures Recommendation: Reliance, Tata Steel and Maruti were the top three traded counters in this segment. Trading activity in Ranbaxy was quite hectic on Thursday with more than 3,250 trades.
Except for Reliance, all the other counters in the list are in the uptrend. Bear pressure on Friday is likely to terminate most of the uptrend counters in the list.
Selling opportunities are likely to exist in six counters. A lone buying opportunity is likely to exist in Reliance.
Selling in Reliance is likely to be the best for Friday's trading. Bear move on Friday is likely to initiate a fresh downtrend in Reliance.
Cash Segment: The composition as well as the ranking of the top-10 active counters list remains undisturbed. Thursday's market action resulted in initiating the uptrend in the recommended counter-SAIL.
Bear move on Friday could be a threat to most of the uptrend counters in the list.
On the other hand, the lone downtrend counter-Tata Motors is likely to be under threat. Bears are likely to have opportunity in six counters.
A lone buying opportunity is likely to exist in Tata Motors.
Selling in Reliance is likely to be the best bet for Friday's trading. Bearish trigger level for this counter is placed very close to its closing price. Bear pressure on Friday is likely to trigger the downtrend in Reliance.
(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.
More Stories on : Technical Analysis
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line