Financial Daily from THE HINDU group of publications
Tuesday, Jul 19, 2005
BULLS were in total command of Monday's trading activity. The sentiment reading of the tradable counters stands bullish.
Bear domination on Tuesday has the potential to reduce the bull count by a considerable margin thereby resulting change in the sentiment reading.
Otherwise, the prevailing bullish sentiment is likely to be further strengthened.
Nifty Futures Recommendation: The near month July contract opened with a bull gap of around 14 points and made steady gains during the day's trading. Bears were left with no opportunity to recover.
During the open, the July contract witnessed a freak trade and registered a high of 2,287.
The freak trade has been discarded for our study. The next high of 2,239 has been considered for the analysis.
The July contract closed with a gain of 25 points over the previous close.
The uptrend in the July contract remains intact. The exit and bearish trigger levels for the July contract are placed quite far away.
In the normal course of trading on Tuesday, these levels are unlikely to be disturbed.
Stock Futures Recommendation: There were no new entries or exits to the top 10 active counters list. The ranking of the list too remains unchanged.
For Tuesday, most of the counters in the list are likely to be under threat. Bulls are likely to have opportunity in ICICI Bank, ONGC and SBI.
Selling opportunities are likely to exist in NTPC and SBI.
Buying in ONGC is likely to be the best bet for Tuesday's trading. Bullish trigger level for this counter is placed closer to the last traded value.
Bull pressure on Tuesday is likely to initiate a fresh uptrend in ONGC.
Cash Segment: The composition of the top 10 tradable list underwent a change.
TCS gained entry with the exit of VSNL. The ranking the list had some changes. Infosys moved to the second position followed by Reliance Energy and Satyam.
None of the counters in the list is in the downtrend.
Bear domination on Tuesday is likely to terminate most of the uptrend counters in the list. Selling opportunities are likely to exist in four counters.
Buying opportunities are likely to exist in two counters.
For Tuesday, the best bet is likely to be the selling in SBI. This counter is in the sideways mode.
Sell level for this counter is placed quite closer to the current level. Bear move 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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