Financial Daily from THE HINDU group of publications
Thursday, Nov 18, 2004
THE market witnessed range-bound movement on Wednesday.
However, bulls managed to gain from the day's trading. The sentiment reading of the tradable counters remains bullish.
Bear domination on Thursday is likely to change the sentiment reading to bearish. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.
Nifty futures recommendation: In the initial hour of the day's trading the November contract gained nine points. During the rest of the day it moved within that band.
The November contract registered an intra-day high of 1,891 after touching a low of 1881. It closed with a marginal gain of 3 points over Tuesday's close.
Bulls were successful in initiating the uptrend in the November contract. The initiated long position is under threat, as the exit level is placed quite closer to its last traded value.
Bearish trigger level for November contract is placed quite away from its current level. In the normal course of trading on Thursday, the bearish trigger level is unlikely to be triggEred.
Stock futures recommendation: The top three active counters in this segment were Tata Steel, State Bank of India and Reliance. Bear domination on Thursday is likely to terminate most of the uptrend counters in the list. On the contrary, the downtrend in ONGC and Ranbaxy are likely to be under threat.
Buying opportunities are likely to exist in ONGC and Reliance. Selling opportunities are likely to exist in CNX IT, Maruti, Reliance and Tata Steel. The best among the above is likely to be the buying in Reliance.
Buy level for this counter is placed closer to its last traded price. Bull move on Thursday is likely to initiate a fresh uptrend in Reliance.
Cash segment: Wednesday's market action resulted in triggering the uptrend in the recommended counter SAIL.
Bear move on Thursday could be a threat to most of the uptrend counters in the list. On the other hand, the lone downtrend counter - ONGC is likely to be terminated.
For Thursday, three opportunities are likely to exist in either side of trading. Buying in State Bank of India is likely to be the best bet for Thursday's trading. This counter is in the sideways move.
Bullish trigger level for this counter is placed within two rupees from its closing price. Bull pressure on Thursday is likely to trigger 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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