Financial Daily from THE HINDU group of publications
Saturday, May 28, 2005
Financial Daily from THE HINDU group of publications Saturday, May 28, 2005 |
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Markets
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Technical Analysis Bulls prevail K. Premkumar
BULL domination on Friday turned the sentiment reading in their favour. Further bull pressure on Monday is likely to strengthen the prevailing sentiment reading. On the contrary, it is likely to turn bearish. Nifty Futures Recommendation: The June month contract opened with a bull gap of seven points and further went up by another 27 points. Bears made a comeback during the later part of the day's trading and regained their earlier losses. The June month contract closed with a gain of around 12 points over the previous close. Bull pressure during the day initiated the long position in the June contract. Exit and bearish entry levels are placed quite far away. These levels are unlikely to be triggered in the normal course of trading on Monday. Stock Futures Recommendation: The composition of the top 10 list had a minor change. Canbank gained entry in the place of Bank of India. The top three traded counters in this segment were Tata Steel, Reliance Industries and Satyam Computers. The exit level for the uptrend in Bank of India is placed at 98.85. All the counters in the list are likely to be under threat for Monday's trading. There are ample opportunities for the bears. Buying opportunities are likely to exist in State Bank and Tata Motors. The best is likely to be selling in State Bank. This counter is in sideways mode. Bear move on Monday is likely to initiate a fresh downtrend in this counter. Cash Segment: The composition of the list had no changes. However, the ranking of the list had a minor change. Maruti & Tata Steel interchanged their rankings. ONGC moved to eighth position followed by Tata Motors and Oriental Bank. The downtrend in Tata Motors is likely to be safe on Monday's trading. However, bear domination on Monday is likely to terminate all the uptrend counters in the list. Selling opportunities are likely to exist in almost seven counters. Buying opportunities are likely to exist in Infosys and SAIL. The best bet is likely to be the selling in Reliance Industries. Bearish level for this counter is placed quite closer to its last traded price. Bear pressure on Monday is likely to trigger the downtrend in Reliance Industries. (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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