Financial Daily from THE HINDU group of publications
Thursday, Jun 09, 2005
WEDNESDAY'S trading activity witnessed narrow movement. Neither bulls nor bears could gain much from the day's trading.
The sentiment reading of the tradable counters stands neutral. Bears and bulls are equally poised to capture the sentiment reading in their favour during Thursday's trading.
Nifty futures recommendation The June month contract opened around the previous close and moved down by around eight points. But bears were unable to sustain and gave way to the bulls. The June contract closed with a gain of nine points over Tuesday's close.
The long position in the contract is in the profitable zone. The exit and bearish trigger levels are placed slightly away from the current level.
In the normal course of trading on Thursday, these levels are unlikely to be triggered.
Stock futures recommendation The composition as well as the ranking of the list remain unchanged.
The top three traded counters were Reliance Industries, Tata Steel and Satyam Computer.
The exit levels for the long positions in Bank of Baroda, Maruti and PNB are placed at Rs 204.15, Rs 458.10 and Rs 391.80, respectively.
All the trailing positions in the list are likely to be under threat for Thursday. Selling opportunities are likely to exist in five counters, while buying opportunities are likely to exist in seven. The best bet is likely to be buying in Reliance Industries. This counter is in the sideways mode. The buy level for this counter is placed nearer to the last traded price.
A bull move on Thursday is likely to initiate the up-trend in Reliance Industries.
Cash segment: The composition as well as the ranking of the top-10 active counters list remain unchanged. Bears were successful in initiating the downtrend in the recommended counter Ranbaxy.
For Thursday, most of the prevailing counters in the list are likely to be under threat. Bulls are likely to have an opportunity in six counters. Selling opportunities are likely to exist in four counters.
Buying in Tata Motors is likely to be the best bet for Thursday's trading. The bullish trigger level for this counter is placed closer to the current level. Bull pressure on Thursday is likely to trigger the up-trend in this counter.
(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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