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K. Premkumar

FOR the second successive trading day, the market witnessed range bound movement. The sentiment reading of the tradable counters remains neutral. Bull move on Monday is likely to change the sentiment reading in its favour. Otherwise, the sentiment reading is likely to turn bearish.

Nifty Futures Recommendation: The near month May contract opened with a bear gap of 7 points and went further down by another 10 points. Later on, bulls managed to recover most of their day's losses. The May contract moved within a band of 18 points. It closed with a marginal loss of 2 points with respect to previous close.

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Friday's market action had no impact on the recommended levels. Bullish trigger for the May contract remains unchanged. Bull move on Monday has the potential to initiate the uptrend in the May contract. Bearish trigger level for the May contract has been moved quite closer to the current level.

Stock Futures Recommendation: The composition as well as the ranking of the top-10 tradable list remains intact. Tata Steel, Satyam and State Bank were the top three traded counters in this segment. The exit level for the downtrend in MTNL is placed at 117.25.

Bear move on Monday is likely to terminate most of the prevailing uptrend counters in the list. None of the counters in the list are in the downtrend. Selling opportunities are likely to exist in almost all the counters. Buying opportunities are likely to exist in six counters. The best bet for Monday's trading is likely to be the selling in Reliance. This counter is in the sideways mode. Sell level for this counter is placed within two rupees from the last traded value. Bear pressure on Monday is likely to trigger the downtrend in Reliance.

Cash Segment: There were no new entries or exits to the top-10 active counters list. The ranking of the list had a minor change. ONGC and Wipro interchanged their positions.

Bull pressure on Monday could be a threat to the prevailing downtrend counters in the list. On the contrary, the lone uptrend counter — Tata Motors is likely to be under threat. Bears are likely to have opportunity in six counters. Buying opportunities are likely to exist in nine counters. Selling in Reliance is likely to be the best for Monday's trading. Bearish trigger level for this counter is placed closer to the current level. Bear move on Monday is likely to initiate a fresh 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.

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