Financial Daily from THE HINDU group of publications
Thursday, Apr 28, 2005
BEARS were in command in Wednesday's trading activity. The sentiment reading of the tradable counters stand bearish. Bull domination on Thursday is likely to reduce the bear count by a considerable margin, thereby, resulting a change in the sentiment reading. On the contrary, the prevailing bearish sentiment is likely to be further strengthened.
Nifty futures recommendation: The near month April contract opened 21 points lower at 1929, and, thereafter, moved up by around 30 points. During the wee hours of the trading, bears made a strong comeback to recoup their losses. The April contract moved within a band of 37 points. It closed with a loss of 23 points with respect to Tuesday's close.
Bear domination during the day led to the reversal of the uptrend in the April contract. Thursday being the expiry day for the April contract, the prevailing short position may be held with the stop placed at 1959.05. Bullish entry level is given for the May contract.
Stock futures recommendation: The composition of the top-10 tradable list had two changes. ICICI Bank and IPCL gained entry with the exit of ONGC and PNB. The top three traded counters in this segment were Reliance, Tata Steel and Infosys. The exit level for the downtrend in ONGC is placed at 854.45.
None of the counters in the list are in the uptrend. Except for Reliance, all the other counters are likely to be under threat. Fresh entry levels for all the counters are given for the May contract. Bulls are likely to have an opportunity in four counters. Selling opportunities are likely to exist in two counters.
Buying in Wipro is likely to be the best for Thursday's trading. This counter is in the sideways mode. Bullish trigger level for this counter is placed quite closer to the current level. Bull move on Thursday is likely to initiate the uptrend in Wipro.
Cash segment: There were no new entries or exits to the top-10 tradable list. The ranking of the list underwent a minor change. ONGC and SAIL interchanged their positions. The uptrend in ICICI Bank is likely to terminate at 399.95.
Bull move on Thursday is likely to terminate most of the prevailing downtrend counters in the list. On the other hand, the lone uptrend counter, Reliance, is likely to be under threat.
Three opportunities are likely to exist in either side of trading. Selling in State Bank is likely to be the best bet for Thursday's trading. Bear pressure on Thursday is likely to trigger the downtrend in State Bank.
(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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