Financial Daily from THE HINDU group of publications
Saturday, Jan 29, 2005
Financial Daily from THE HINDU group of publications Saturday, Jan 29, 2005 |
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Markets
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Technical Analysis Bulls reign K. Premkumar
BULLS were in total command of Friday's trading activity. Their dominance for the third successive trading day left the bears stranded. The sentiment reading of the tradable counters stands extremely bullish with all the tradable counters in the uptrend. Bear domination on Monday is likely to reduce the bull count by a substantial margin thereby neutralising the sentiment reading. Nifty futures recommendation: During the open, the February month contract lost three points. Bears failed to capitalise on it as they yielded to bull pressure. The February contract moved within a band of 48 points. It closed higher for the week with a gain of 43 points over Thursday's close. Bull domination during the day led to the initiation of the uptrend in the February contract. In the normal course of trading on Monday, the initiated long position is likely to continue. The exit and bearish trigger levels for the February contract are placed far away. Stock futures recommendation: The composition as well as the ranking of the top-10 active counters list remains unchanged. The top three traded counters in this segment were State Bank, Tata Steel and Reliance. Friday's market action resulted in triggering the uptrend in as much as nine counters in the tradable list. Bear domination on Monday could be a threat to most of the uptrend counters in the list. Bears are likely to have opportunity in ACC and ONGC. The best bet is likely to be the selling in ONGC. The exit and bearish trigger level for this counter is placed closer to its last traded value. Bear move on Monday is likely to trigger these levels. Cash segment: The composition of the top-10 tradable list in this segment remains intact. The ranking of the list had some changes. Infosys moved to the top slot followed by Satyam and State Bank. The exit level for the downtrend in Zee Tele continues to remain at Rs 153.05. Bear pressure on Monday is likely to terminate most of the uptrend counters in the list. Traders are left with limited opportunities for Monday's trading. This is likely to exist on the short side of ACC and Tata Motors. Between the two, the best is likely to be ACC. Bear domination on Monday has the potential to reverse the prevailing uptrend in ACC. (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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