Financial Daily from THE HINDU group of publications
Tuesday, Feb 22, 2005
Financial Daily from THE HINDU group of publications Tuesday, Feb 22, 2005 |
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Markets
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Technical Analysis Bear domination K. Premkumar
BEARS gained control of Monday's trading activity. The market sentiment reading of the tradable counters stands bearish with no uptrend counters. Bull domination on Tuesday is likely to reduce the bear count by substantial margin, thereby, neutralising the sentiment reading. Otherwise, the prevailing bearish sentiment is likely to continue with added strength. Nifty futures recommendation: The February month contract opened around its previous close and steadily lost during the day's trading. Bulls were unable to make any impact during the day's trading. The February contract moved within a band of 25 points registering an intra-day high of 2064.20. It closed lower with a loss of around 20 points with respect to previous close. Bear domination during the day re-instated the downtrend in the February contract. In the normal course of trading on Tuesday, the initiated short position is likely to continue. However, bull domination has the potential to terminate the downtrend. Bullish trigger level for the February contract is placed far away. Stock futures recommendation: There were no new entries to the top-10 tradable list in this segment. The ranking of the list too remains intact. State Bank, Tata Steel and Reliance were the top three traded counters in this segment. Most of the counters in the list are in the downtrend. Bull move on Tuesday could be at threat to most of the downtrend counters in the list. Bears are likely to have opportunity in three counters. Buying opportunities are likely to exist in eight counters. For Tuesday, the best bet is likely to be the selling in Tata Steel. Sell level for this counter is placed quite closer to its current level. Bear pressure on Tuesday is likely to initiate a fresh downtrend in Tata Steel. Cash segment: The composition as well as the ranking of the top-10 tradable list remains intact. Monday's market action resulted in triggering the downtrend in the recommended counter - Satyam. Bull move on Tuesday is likely to terminate most of the prevailing downtrend counters in the list. Selling opportunities are likely to exist in two counters. Buying opportunities are likely to exist in seven counters. Selling in Tata Steel is likely to be the best for Tuesday's trading. Bearish trigger level for this counter is placed within a rupee from its last traded price. Bear pressure on Tuesday is likely to trigger the downtrend in Tata Steel. (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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